Don't forget about self-employment taxes! Even though your business is showing a loss now, once you start making money, you'll need to pay both the employer and employee portions of Medicare and Social Security taxes (15.3% total) on your net profit. This is ON TOP OF your regular income taxes. I learned this the hard way with my side business. First year I made actual profit, I got hit with a surprise tax bill because I wasn't setting aside enough for the SE tax portion.

Make sure you're tracking everything properly for the home office deduction if you're working from home. There are two methods - the regular method (calculating actual expenses based on the percentage of your home used for business) and the simplified method ($5 per square foot up to 300 square feet). I use the simplified method for my etsy shop because it's less paperwork, but if you have a dedicated space that's a large portion of your home, the regular method might save you more.

Just want to clarify something about HDHPs and HSA eligibility - even being covered under a qualifying HDHP doesn't automatically make someone eligible for HSA contributions. You also can't be covered by any non-HDHP coverage (with few exceptions like dental or vision) and can't be claimed as a tax dependent on someone else's return.

From my experience with a similar situation last year, the best approach is to make sure each person is only contributing based on the months where they were the policyholder or spouse of the policyholder (not just a domestic partner) on an HDHP. The IRS regulations are really specific that domestic partners don't get the same treatment as spouses for HSAs. Also remember that if you correct excess contributions before the tax filing deadline, the 6% penalty doesn't apply. But if you don't, you'll pay that penalty each year until corrected.

I've dealt with this 1095-A reconciliation issue for three years running now. Here's something nobody tells you: if your income is near certain percentage thresholds of the Federal Poverty Level (like 200% or 300% FPL), even small changes in income can push you over a cliff where the subsidy calculation changes dramatically. It sounds weird that owing $4 with a lower income could happen, but if you were right at one of these thresholds, it makes perfect sense. The system isn't perfectly linear - it has these "cliffs" where the formula changes.

Did you check for any data entry errors? I was in the exact same boat - owed $12 despite making less than estimated - and it turned out I had accidentally transposed two numbers when entering info from one of the columns on my 1095-A. Double-check all the numbers you transferred from your 1095-A to Form 8962!

22 One thing nobody's mentioned - if you have significant income flowing to these members, you should also look into whether you need to withhold state taxes for nonresident members. Some states require this and will hold the LLC responsible if not done properly. NY is particularly strict about this. We got hit with penalties because we didn't withhold for our NY-based member even though we filed all the correct returns. Worth checking into this aspect as well.

15 Just wanted to add - if your LLC is just holding investments and has no business operations, some states have different rules. Passive investment income sometimes gets different treatment than active business income. Some members in my investment LLC got surprised when their states (including NJ) required them to file nonresident returns even though our LLC was registered elsewhere. The investment income "followed" them to their home states.

Try checking if maybe you have special characters in your name fields or address. I had a similar transmission error and it turned out the apostrophe in my last name (O'Brien) was causing the issue. I removed it, resubmitted, and it went through fine!

Has anyone tried using a different tax software instead? I gave up on TurboTax after having similar issues and switched to FreeTaxUSA. My return went through on the first try with no problems.