You've definitely handled this situation well by catching it early and withdrawing the excess before year-end! I went through something very similar when I switched jobs mid-year and had overlapping HSA contributions. A few key points to help with your tax filing: 1. **Form 8889 is your friend** - TurboTax will automatically generate this when you enter your HSA information. In the HSA section, you'll enter your total contributions first (including the excess), then separately enter the excess withdrawal details. The software handles all the calculations. 2. **Watch for the right codes** - Your 1099-SA from HealthEquity should show Code 2 for the excess contribution withdrawal. If any earnings were included in the withdrawal, those will need to be reported as "Other Income" on Schedule 1. 3. **Documentation is key** - Keep all correspondence from HealthEquity about the excess withdrawal. If they haven't already, consider calling them to request a detailed breakdown letter showing the principal vs. earnings split. 4. **Timing matters** - Since you withdrew in December 2023 (same tax year as the contribution), you'll avoid the 6% penalty and minimize any taxable earnings. The fact that you caught this before filing puts you in the best possible position. TurboTax's HSA section is pretty intuitive once you know to enter everything systematically. You should be able to file confidently knowing you handled the correction properly!

You handled this situation perfectly! As someone who's helped many taxpayers with HSA excess contributions, I can confirm you're on the right track. Since you withdrew the excess in December 2023 (same tax year), you'll avoid the 6% excise tax penalty completely. Here's what to expect on your tax forms: - Your 1099-SA should show Code 2 for the excess contribution withdrawal - Any earnings on that $1,450 (likely minimal since it was only in your account a few months) will be taxable income reported on Schedule 1 - Form 8889 will handle all the calculations - TurboTax generates this automatically when you enter HSA info The key is reporting only your allowable HSA contribution (up to the annual limit) for the deduction, while properly accounting for the excess withdrawal. TurboTax's HSA section under "Deductions & Credits" → "Retirement & Savings" will walk you through this step by step. Keep all documentation from HealthEquity about the withdrawal - that paper trail is crucial. You really did everything right by being proactive instead of letting this slide into 2024. Your quick action saved you from much bigger headaches down the road!

Reading through all these experiences has been incredibly eye-opening! I inherited my stepfather's rental property about 2 months ago and honestly had no idea about the step-up basis or appraisal requirements until I found this discussion. The horror stories about audits and having to pay capital gains on inflated values really drove home how important this is. I was leaning toward just using the property tax assessment, but after seeing what happened to Dylan's family, that clearly isn't worth the risk. I'm definitely going to look into finding an estate planning attorney like Ava suggested - seems like the professional guidance could save me from making costly mistakes I don't even know exist yet. The idea of state-specific rules on top of federal requirements is honestly terrifying when you're trying to figure this all out on your own. Thanks everyone for sharing your experiences, both good and bad. Sometimes you need to hear the real-world consequences to understand why something that seems optional (like getting an appraisal) is actually essential. Better to spend a few hundred now than potentially thousands later!

This thread has been incredibly helpful - thank you all for sharing your experiences! I'm in a similar situation with my late grandmother's house that I inherited 4 months ago. I've been procrastinating on the appraisal thinking it was just an optional "nice to have," but after reading about the audit situations and potential tax consequences, I realize this is actually critical. The point about market conditions changing over time really resonates with me. Even in just the 4 months since my grandmother passed, I've noticed property values in her neighborhood have shifted quite a bit. I can only imagine how much harder it would be to establish accurate comparable sales if I waited years. I'm going to start looking for both an estate planning attorney and a qualified appraiser this week. The suggestion about finding attorneys who work with tax professionals sounds perfect - dealing with one coordinated team instead of trying to manage multiple separate professionals definitely appeals to me right now while I'm still processing everything. One last question for the group - for those who went through this process, roughly how long did it take from deciding to get the appraisal to having all the documentation complete? I'm trying to plan my timeline and want to make sure I'm not underestimating how long this might take.

Don't forget about state taxes too! Everyone's talking about IRS, but most states also require back tax filing and have their own statutes of limitations. I got caught up on federal but ignored state, and ended up with a nasty surprise from my state tax agency even after the IRS was satisfied.

I went through this exact same situation a couple years ago - the anxiety is real but you're doing the right thing by facing it! Here's what I learned from my experience: The IRS typically wants you to file the last 6 years to be considered "compliant," but like others mentioned, prioritize the last 3 years first if you think you're owed refunds. I discovered I was leaving over $4,000 on the table from 2020-2022 that I almost lost to the 3-year deadline. One thing that really helped me was requesting my "wage and income transcripts" from the IRS for each year I missed. This shows you exactly what income was reported to them (W-2s, 1099s, etc.) so you know what they already know about. It helped me realize I was missing some 1099s I had forgotten about. For someone with mainly W-2 income like you described, the returns should be pretty straightforward. I used TurboTax for prior years and it walked me through everything. The penalties weren't as scary as I thought they'd be, especially for years where I was due refunds. Start with 2021-2023, get those refunds secured, then work backward. You've got this!

25 Has anyone here dealt with filing a final 1120 when you still had ongoing litigation against the corporation? My situation is similar to the original poster, but we have a pending lawsuit that might not be resolved for another year or more.

Just went through this exact situation last year with my dissolved S-Corp. Definitely use your personal address on the final Form 1120 - the IRS needs to be able to reach you for any follow-up questions or notices, and using an inaccessible business address will only create headaches later. One thing I'd add that hasn't been mentioned yet - make sure you also file Form 966 (Corporate Dissolution or Liquidation) within 30 days of adopting the plan of dissolution if you haven't already. Since you dissolved in December 2023, you may have missed this deadline, but it's still worth filing even if late to properly notify the IRS of the dissolution. Also, keep copies of your state dissolution paperwork with your tax records. The IRS sometimes requests this documentation to verify the dissolution date and process. Using your home address ensures you'll actually receive any such requests.

As someone who's been following this thread closely, I just wanted to say how incredibly helpful everyone's advice has been! This is exactly the kind of community support that makes dealing with stressful situations like identity theft so much more manageable. I'm particularly impressed by the comprehensive action plan that's emerged from all the contributions: - Contact Walmart's payroll department immediately with the police report - File identity theft reports with FTC and local police - Check wage and income transcript for other fraudulent forms - Contact IRS Identity Theft Hotline for account protection - Paper file tax return with Form 14039 and supporting documentation - Request fraud alerts be placed on SSN with all affected companies The emphasis on documentation throughout this process really stands out - creating a spreadsheet to track all interactions, keeping copies of everything, and using certified mail for important communications. These details make the difference between a smooth resolution and months of additional headaches. For anyone else who might find themselves in a similar situation, this thread is basically a masterclass in handling employment-related identity theft. The combination of professional tax preparer insight, personal experiences from people who've been through this, and practical step-by-step guidance is invaluable. @Jamal Brown - you're in good hands with all this advice. Stay organized, be persistent, and don't let this stress you out too much. You caught it early and you're taking all the right steps!

I'm new to this community but wanted to share my experience since I dealt with something very similar just a few months ago. I received a fraudulent 1099-MISC from DoorDash for work I never did - turns out someone had been using my SSN for months without me knowing. The advice everyone has given here is excellent, especially about acting fast and documenting everything. One thing I'd add that really helped me: when you call Walmart's payroll department, ask them specifically for the date when the "employee" was first onboarded and their last day of work. This information helped me prove to the IRS that I was provably elsewhere during those time periods (I had employment records from my actual job). Also, if you have any old tax returns handy, it might be worth reviewing them to make sure this hasn't happened before with smaller amounts that you might have missed. I discovered the identity thief had actually used my information for a small Uber Eats gig the previous year for only $200, but I had missed it because the 1099 went to an old address. The whole process was stressful but everyone was right - the IRS was actually pretty helpful once I had all my documentation together. You're definitely handling this the right way by taking immediate action. Stay strong and keep us updated on how it goes!