Does commercial insurance become a 70% write-off too (matching the business use percentage) or can you deduct the full difference between personal and commercial rates?

You would deduct the commercial insurance at the same percentage as your business use - so 70% in your case. The simplest approach is to pay for the insurance from your business account and then account for the personal portion (30%) as a draw or distribution to yourself. If you're using the standard mileage rate though, insurance is already built into that rate, so you wouldn't deduct insurance separately. That's one of the tradeoffs between the two methods - standard mileage is simpler but gives you less itemized control.

This is important! The luxury auto limits for 2023 kicked in at $20,200 for passenger cars. It'll probably be a bit higher for 2025. Under that limit, you can take larger depreciation deductions. Over that threshold, your annual depreciation gets capped, stretching out the deductions over more years.

That's a great point I hadn't thought about! I just double checked and thankfully mine shows coverage for all 12 months for both me and my kids. But what would have happened if there was a mistake and you'd already filed? Would you have needed to amend your return?

If you'd already filed and later discovered an error on your 1095-B, you typically wouldn't need to amend your return in most cases. Since 2019, when the tax penalty for not having health insurance was reduced to $0 at the federal level, there's generally no direct tax impact. However, it's still important to get the form corrected by contacting Medicaid, as having accurate records of your health insurance coverage can be important for other reasons, including potential state requirements or if questions come up later about your coverage history.

You don't need to submit either form with your tax return. Both the 1095-B (from Medicaid) and 1095-C (from your employer's insurance) are informational forms for your records. You do need to accurately answer the health insurance coverage questions in your tax software, indicating that you had coverage all year through a combination of employer insurance and Medicaid. The forms themselves don't get submitted - they're just proof of your coverage if you're ever asked about it.

Thank you! That makes it so much clearer. I was driving myself crazy thinking I needed to enter all the policy numbers and dates from both forms. Such a relief to know I just need to indicate I had coverage all year and keep these forms in my records.

Can you still report them if they sent it but to the wrong address? Technically my old employer has my wrong address because I moved and never updated them after I quit.

That's a slightly different situation. If they sent your W-2 to the last address they had on file, they've technically fulfilled their legal obligation. The responsibility to provide updated address information typically falls on the former employee. However, if you can prove you attempted to update your address with them and they ignored it, then you might have a case. But in most situations where you simply didn't notify them of your move after leaving, they're considered compliant if they sent it to your last known address.

SSA.gov will show your earnings record but it won't have current year detailed W-2 information in time for tax filing. The detailed info from W-2s typically isn't available through SSA or IRS until May or June of the following year. It's great for verifying past years though!

Would filing an amended return for 2023 be easier than trying to explain the situation on my 2024 return? I'm worried about triggering an audit if things don't match up properly.

Filing an amended return would create a cleaner paper trail, but it's probably more work than necessary in your situation. Since you already withdrew the excess before the deadline and didn't take a deduction for the excess amount on your 2023 return, the main issue is just documenting the nature of the distribution on your 2024 return. Attaching an explanation statement to your 2024 return is likely sufficient and much simpler than amending your 2023 return. The risk of audit is actually quite low for this situation. The IRS is primarily concerned that you didn't deduct more than you were entitled to (which you didn't) and that you properly report distributions (which you will with the explanation). This type of corrective action happens frequently with HSAs and isn't a red flag as long as you document it properly.

The excess contribution rules are the same whether you're self-employed or not. What matters is your HDHP coverage. Since your coverage didn't start until February, you'd need to prorate your contribution limit. For 2024, if you have individual coverage, you'd be limited to 11/12 of the $4150 limit, which is about $3804. So your $3900 would include about $96 in excess contributions that you should withdraw before the filing deadline.

I wish! My foreign investments generate way too much in foreign taxes to qualify for the simplified credit. I'm talking about $9,500 in foreign taxes last year, so there's no way to get under that $300 threshold without completely overhauling my investment strategy and potentially giving up significant returns. That's why I'm stuck dealing with Form 1116 and these frustrating limitations.

Interesting idea but wouldn't that just be avoiding the problem by giving up the investments entirely? The whole point is to keep the investments while figuring out how to use the tax credits.