This is really helpful! I didn't know about this grouping election at all. Where exactly do I make this election? Is it something I need to file separately or is it part of the regular tax forms?

You make the grouping election by attaching a statement to your tax return in the year you want to start the grouping. The statement should identify the properties you're grouping together and state that you're treating them as a single activity for passive activity purposes under Regulation 1.469-4(c). Once you make this election, it's binding for future years unless your facts and circumstances change significantly. The statement doesn't have a specific form - it's just a written declaration attached to your return. Many tax software programs don't prompt you for this, so you may need to create it separately and attach it as a PDF if filing electronically.

What tax software did you use when you got audited? I'm wondering if some programs flag these deductions more than others.

I used TurboTax when I got audited. I don't think it was the software that triggered the audit though - from what the auditor told me, it was more that claiming real estate professional status with significant losses is just a common audit trigger, especially with higher household income. The auditor specifically looked for contemporaneous documentation - meaning records created at the time I did the work, not reconstructed later. They were suspicious of round numbers (like exactly 4.0 hours) and wanted to see variation in my time logs to make them seem more authentic. My recommendation: keep a daily log using a time-tracking app or detailed calendar entries.

7 I had a similar issue and found my W-2 in my Paycor account even though my employer said they "weren't ready yet." How would the original poster know if they have access? Is there a standard login page or something?

4 Yes, Paycor has a standard employee self-service portal at secure.paycor.com where employees can log in. If your employer set it up, you would have received an email invitation at some point to create your account. Even former employees typically retain access to their documents for a period after leaving. If you never set up an account, you can try the "forgot password" option using your work email, or call Paycor's employee support line at 800-381-0053 and ask if you have an account associated with your employer. Sometimes they can help reset access if you can verify your identity.

14 I reported a former employer two years ago. Called the IRS W-2 complaint line, gave all the details, and about 2 weeks later the employer suddenly emailed W-2s to everyone with a very apologetic note. Heard through a friend still working there that they got hit with some decent fines. Definitely worth reporting!

Thanks for sharing your timeline! Did you check the Where's My Refund tool at all during your wait? Just wondering if it was accurate or if your money showed up before the tool updated.

I checked Where's My Refund every few days. It was pretty accurate - showed "Return Received" until Feb 15, then switched to "Refund Approved" with my expected deposit date listed as Feb 17. The money actually hit my bank account around 3am on Feb 17, exactly as predicted. The tool only updates once a day (usually overnight), so it's not worth checking multiple times daily. If you have the IRS2Go app, it'll give you the same information but it's a little more convenient than going to the website each time.

I claimed EITC and got my refund in the second wave. They legally can't issue EITC refunds before mid-February. Filed Jan 20, accepted Jan 21, approved Feb 18, DD Feb 22.

How much did the tax pro cost tho? I talked to one when I got audited and they wanted $2,500 upfront! Seemed like throwing good money after bad.

The cost really varies based on complexity. Mine was $1,200 for a fairly complicated schedule C audit, so the $4,700 saved was definitely worth it. For something more straightforward like just a mileage deduction issue, you might find someone for $500-800. Some offer free initial consultations where they can assess your situation and tell you if they think they can help enough to justify their fee. The key is finding someone who specializes in audit defense, not just a regular tax preparer who does audits occasionally.

I did exactly this! Google had my location history for 2021 when I got audited. I exported it all, created a spreadsheet showing dates, starting point, destination, mileage, and purpose of trip. The auditor accepted about 70% of it. They said it wasn't perfect but was "reasonable substantiation" given the circumstances.

So if I understand correctly, I could leave my $2100 excess in there, pay the 6% tax one more time for 2024, but then for 2025 I would only contribute $2050 instead of the full $4150? And then everything would be back to normal going forward? That actually sounds easier than trying to get my HSA administrator to do a special withdrawal.

Exactly right! You'll pay the 6% tax ($126) one more time when you file your 2024 return, but then for 2025, you'd only contribute $2050 instead of the full $4150. This way, your total 2025 contribution (including the $2100 excess that remained in your account) equals the maximum allowed contribution. After that, everything is back to normal for 2026 and you can resume contributing the full annual limit. Many people find this approach simpler than dealing with the withdrawal process, especially if your HSA administrator has a complicated process or charges fees for excess contribution withdrawals.

The 6% excess contribution tax applies to the tax year in which the excess contribution occurred. So if you over-contributed in 2023, you'd pay the tax when filing your 2023 tax return (which you'd typically file in early 2024). If you don't correct the excess contribution by withdrawing it or using it up (by contributing less in a later year), then you'll continue paying the 6% tax in each subsequent year until the situation is fixed. That's why the original poster is facing another 6% tax for 2024 - because the excess from 2023 is still sitting in their HSA.