Has anyone actually gone through this with Fidelity HSA? Their investment platform seems especially complicated for figuring out the earnings on excess contributions.

I dealt with this exact situation last year with my HSA through Bank of America. The key thing that helped me was creating a detailed spreadsheet tracking my contributions by date and the corresponding investment performance for each batch. What I did was go back through my HSA statements and identify exactly when I made the excess contribution (let's say it was my last $500 contribution in November). Then I tracked how my investments performed from that date forward until I discovered the issue. The pro-rata method others mentioned is correct, but I found it helpful to also document everything step-by-step in case the IRS ever questions it. I kept screenshots of my account balances, contribution dates, and the final calculation. One tip: when you call your HSA provider, specifically use the phrase "return of excess contributions with net income attributable" - this is the exact terminology they need to hear to process it correctly for tax reporting purposes. Don't let them just process it as a regular distribution or you'll get hit with taxes and penalties you shouldn't owe. The whole process took about 3 weeks from calculation to getting the money back, but it was worth doing it right to avoid tax headaches later.

One detail I didn't see addressed yet on your question about selling some but not all PTP units: The K-1 you receive won't distinguish between your different lots. If you sell half your position, the K-1 will just show your overall ownership percentage, and it's up to you to allocate income and deductions across your remaining lots for basis tracking. Also, regarding your observation about capital accounts affecting line 1 and 20V - you're exactly right. I've tracked multiple PTPs for years, and there's a direct correlation between capital account balance and income/UBTI allocation. This is because partnerships allocate income based on your capital interest, which changes as distributions reduce your capital account. For death transfers in taxable accounts, the step-up helps reset negative capital accounts, which can be a huge benefit. But for IRAs, the UBTI issues persist regardless of owner death since the IRA itself is the partner, not the individual.

One often overlooked issue with PTPs is how suspended losses affect your situation when selling. If you've received K-1s with losses that were suspended due to passive activity or at-risk rules, those suspended losses become deductible when you completely dispose of your interest. But for your scenario #2 (sell and rebuy), you technically haven't fully disposed of your interest for tax purposes if you rebuy within the same year. This means those suspended losses remain suspended despite the sale transaction. For the UBTI reporting on line 20V, death transfers can be especially confusing. Technically, the UBTI character passes through to the heir, but the step-up in basis can reduce future UBTI by giving you a higher basis to offset against UBTI income.

I always get flagged for review by Michigan becaus I work remotely for an out-of-state company. This year was 11 weeks of review. Last year was 13 weeks. It's ridiculous but seems to be their normal process now.

I'm going through the exact same thing right now! Filed my Michigan state return in early March and it's been stuck in review for 10 weeks with zero communication. My federal refund came through fine weeks ago too. It's so frustrating not knowing what's causing the delay or how much longer it might take. Reading through all these responses, it sounds like 8-12 weeks is becoming the new "normal" which is absolutely ridiculous. I think I'm going to try the secure messaging through Michigan Treasury Online since calling seems to be a waste of time. Thanks everyone for sharing your experiences - at least I know I'm not alone in this mess!

Pro tip: Take a picture of your check or bank statement that shows your routing number and account number. Save it somewhere secure on your phone so next year you don't have to hunt for this information again. I do this with all my tax documents and it saves so much time and stress.

This is such helpful information! I just went through this exact same confusion with my Bank of America account. For anyone else reading this, I wanted to add that you can also verify you're using the correct routing number by logging into your online banking and looking for the "Direct Deposit" or "ACH" section - most banks will specifically list the routing number to use for direct deposits there. Also, if you're still unsure, you can call your bank's customer service line and specifically ask for the "ACH routing number for direct deposits" rather than just asking for "the routing number." This helps avoid any confusion since representatives sometimes give out the wire transfer number by default. Better to be 100% sure than deal with a rejected refund!

Has anyone successfully amended from resident to nonresident WITHOUT owing more money? My accountant is telling me I'll definitely end up owing but I've heard some people actually get more money back because of tax treaties?

I went through this exact same situation two years ago! Filed as resident on F1 visa when I should have been nonresident. The good news is that the IRS generally doesn't penalize you for voluntary corrections, especially for residency status mistakes which are super common for international students. You definitely should amend using Form 1040X and file the correct 1040NR. The key is to do it proactively before they catch it. In my case, I actually ended up owing about $200 more because I had to give back some credits I wasn't eligible for as a nonresident, but it was way better than waiting and potentially facing penalties. One thing to check - make sure you look into any tax treaty benefits your country might have with the US. Some countries have special provisions for students that can actually reduce your tax liability. Also, if you had any scholarship income, the treatment might be different as a nonresident (sometimes better!). The whole process took about 8-10 weeks to get resolved, but the IRS sent me a letter confirming the adjustment and I paid the small difference. Much less stressful than I expected!