4 Does anyone know if stimulus payments or pandemic relief count as unearned income for kiddie tax purposes? My daughter received some unemployment plus the extra federal pandemic amount, and I'm not sure how to treat it on Form 8615.

Just went through this exact situation with my 16-year-old nephew last year! The key thing to remember is that you'll definitely need your parents' tax information to complete Form 8615 since your sister's unemployment benefits ($3100) exceed the $2,300 threshold. Here's what you'll need from your parents' tax return: their adjusted gross income, taxable income, tax before credits, and filing status. The IRS has a specific worksheet in the Form 8615 instructions that walks you through the calculation step by step. One tip that saved us a lot of headache: make sure to keep the earned income ($2600 from her mall job) completely separate from the unearned income (unemployment) when doing the calculations. The earned income gets taxed normally at her rate, while only the portion of unearned income above $2,300 gets the kiddie tax treatment. Since you're in Oklahoma, you'll also want to check if the state has any similar rules that follow the federal kiddie tax - some states do, others don't. Good luck with the filing!

Letter 86C is definitely a relief! I remember getting one last year and being so confused by the official language, but it really is just their way of saying "all good, no issues found." One thing I'd recommend is setting up text alerts with your bank if you haven't already - that way you'll know the moment your refund hits. The IRS website also has a "Where's My Refund" tool that updates pretty regularly once they issue the letter. Hang in there, you're almost at the finish line!

Letter 86C is definitely a good sign! I went through this exact same situation last year and was panicking for no reason. The letter basically confirms they've completed their review and found no issues with your return. From my experience, once you receive the physical letter, your refund should be direct deposited within 10-21 days (mine took about 14 days). Pro tip: make sure your banking info is correct on file because any delays there could slow things down. You're almost done with this whole process - the hardest part (the waiting and worrying) is basically over!

This entire discussion has been really enlightening! I'm a nonresident alien on an L-1 visa and have been dealing with exactly this HSA confusion. My employer automatically enrolled me in their HSA plan when I started, and I've been contributing through payroll deductions for the past year. After reading through all the responses here, I checked my W-2 and confirmed that Box 1 does match Box 16, which means my employer correctly included the HSA contributions in my taxable income. This gives me confidence that I don't need to file Form 8889 or make any special adjustments. What really helped me understand this was the clarification about 1099-SA forms being for distributions (taking money out) versus the W-2 Box 12 Code W showing contributions (putting money in). That distinction was key to understanding why the Sprintax agent's reasoning about not receiving a 1099-SA was irrelevant. For anyone else in a similar situation: definitely verify that your W-2 Box 1 and Box 16 match. If they do, it sounds like your employer is handling the tax treatment correctly for nonresidents. And thanks to everyone who shared their experiences with calling the IRS and using various tools - it really helps newcomers like me navigate these complex situations!

As someone who recently went through this exact same confusion as a nonresident alien, I want to add that it's really important to understand the timing of when HSA eligibility rules apply. When I spoke with an IRS agent (after using one of the callback services mentioned here - worked great!), they explained that your eligibility status is determined month by month. So if you change from nonresident to resident status during the tax year, you might be eligible for HSA benefits for part of the year. The agent also clarified something that wasn't mentioned much here - even though nonresidents generally can't claim HSA tax benefits, if your employer is contributing to your HSA (employer contributions), those amounts might be treated differently than your own payroll deductions. You'll want to look carefully at your W-2 to see if there are both employer and employee contributions listed. For those keeping their HSA accounts open as nonresidents, just remember that while you can't make tax-advantaged contributions, the money already in there can continue to grow tax-free, and you can still use it for qualified medical expenses. You just lose the upfront tax deduction benefit that residents get. The key takeaway that matches what everyone else found: check that W-2 Box 1 equals Box 16, skip Form 8889, and make sure HSA contributions are included in your taxable income. But definitely verify your specific situation if you have any doubt!

Just want to add another perspective - if you're not comfortable with how CashApp Tax is handling your retirement distributions, it might be worth paying for a more robust program just for this year. I've used both TurboTax and H&R Block, and they walk you through retirement distributions much more thoroughly with specific questions that help ensure accuracy. Even if it costs a bit more, getting it right is worth it. Retirement distribution mistakes can be expensive if the IRS thinks you took taxable distributions that you didn't report properly.

Mason, I went through something very similar last year with multiple Roth IRA distributions and CashApp Tax. Here's what I learned that might help: The blank Box 2a on your first two 1099-Rs is actually good news - it means those distributions are likely just your original contributions coming back to you tax-free. Since you mentioned opening these accounts "a few years back," you're probably well within your contribution amounts. For the third one with $390 in Box 2a, that's showing taxable earnings. The code T confirms it's an early distribution that might be subject to penalties. One thing to watch out for with CashApp Tax - when it asks for your "basis" in the Roth IRA, that's the total of all contributions you've made over the years (not including any growth). You'll need this number to complete Form 8606 correctly. If you're feeling overwhelmed, don't be afraid to switch to a more comprehensive tax program for this year. Sometimes the peace of mind is worth the extra cost, especially when dealing with retirement accounts where mistakes can be expensive. Keep all your 1099-R forms and any records showing when you made contributions to these accounts - you'll need them if the IRS ever has questions.

This has been an absolutely fantastic thread - I've learned more about the Additional Medicare Tax in these comments than from hours of searching IRS publications! Just to summarize the key takeaways for anyone else in a similar situation: 1. The 0.9% Additional Medicare Tax is based on Medicare wages (Box 5 of W-2), not AGI or taxable income 2. Thresholds are $200k single/$250k married filing jointly/$125k married filing separately 3. The tax only applies to amounts OVER the threshold, not the full income 4. For married couples, filing jointly uses the combined income threshold 5. Employer withholding starts at $200k regardless of filing status, so you might get refunds if under joint threshold 6. Bonus deferral strategies can help manage threshold timing 7. Most pre-tax deductions (401k, health insurance) don't reduce Medicare wages, but a few like transportation benefits do 8. Equity compensation (RSUs, stock options) counts toward Medicare wages and can be harder to time 9. Setting aside money for potential additional tax is smart planning even if you think you'll stay under For those mentioning the various tax tools and services - it's great to see real user experiences rather than just theoretical advice. The complexity of these calculations really makes professional guidance or specialized tools worthwhile when you're close to these thresholds. Thanks to everyone who shared their experiences and strategies!

For someone crossing the threshold for the first time, I'd actually recommend starting with one of the tax planning tools mentioned earlier in this thread (like taxr.ai) to get a baseline understanding of your situation, then consulting with a tax professional if you have complex circumstances like equity compensation or multiple income sources. The tools can help you quickly model different scenarios - like bonus deferrals or maximizing certain pre-tax benefits - without the cost of professional consultation for every "what if" question. Plus, having done some preliminary analysis makes your time with a tax professional much more productive since you'll have specific, informed questions rather than starting from zero. That said, if your situation involves things like non-qualified deferred compensation, significant equity awards, or you're married with complex dual-income scenarios, jumping straight to professional advice might be worth it. The Additional Medicare Tax interacts with other high-income provisions (like the Net Investment Income Tax) in ways that can get complicated quickly. The key is starting early in the year like you're planning - so many people in this thread mentioned scrambling at year-end, but if you're thinking about this in January for your 2025 taxes, you'll have much more flexibility with timing strategies and won't be stuck with whatever income timing your employer defaults to.