This is interesting! Would you use Schedule D for this instead of reporting as hobby income? And do you need to keep receipts for everything to prove what you originally paid?

I do customize some of them! I repaint about 30% of the models I sell, and sometimes do minor repairs on vintage pieces. I just wasn't sure if that was enough to count as a "real business" since it's still mostly just for fun. But it sounds like that could help my case?

That definitely strengthens your case! The customization and repairs show you're adding value through your skills and labor, which is a big factor in the business vs. hobby determination. Make sure you document your work process - take before and after photos of your customizations, track the time you spend on each project, and keep receipts for all supplies. Also, consider creating a separate Instagram or Facebook page showcasing your work, even if it's just casual. Having a business presence online is another factor that supports business treatment. You might also want to look into selling at model horse shows or conventions if you don't already - participating in trade shows is another indicator the IRS looks for when determining if something is a business. The key is to show that you're making decisions with the intent to eventually be profitable, even if you're not there yet.

Thank you for pointing this out! I did take my employer's insurance and have been covered all year through them. I definitely checked the box on my return saying I had coverage for all 12 months. So it sounds like I'm ok from what everyone is saying?

Yes, you're fine then! If you had employer coverage all year and indicated that on your return, the 1095-C is just documentation for your records. You don't need to amend your return or do anything else. The IRS already gets this information reported to them directly from your employer. Just keep the form with your tax records in case there are ever any questions, but you're all set!

100% agree. My 1095-B comes late EVERY year. I think employers have until March to send them out, but W-2s have to be out by January 31. The deadlines don't make any sense when tax filing starts in late January!

Thanks for confirming I'm not the only one! It's so frustrating. You'd think after all these years they'd figure out how to align these deadlines better. I always end up having to decide whether to file early and get my refund sooner, or wait for all my forms and risk delaying my refund.

Do you need to use the same exact exchange rate for all the accounts on one day, or can you use the rates from when you actually had the maximum balance in each account (which might be different days)?

For FBAR (FinCEN Form 114), you should use the Treasury Financial Management Service rate on the last day of the calendar year if you're reporting the value on that day. However, if you're reporting the maximum value during the year (which you should be), you're supposed to use the rate on the day when the maximum value occurred. For Form 8938, you use the exchange rate on the last day of your tax year, regardless of when the maximum balance occurred. This creates inconsistencies between the two forms, which is why they often have different reported values for the same accounts.

If you qualify for the Streamlined Filing Compliance Procedures, there's a miscellaneous offshore penalty of 5% of the highest aggregate balance of your foreign financial assets during the 6-year lookback period. However, for non-willful violations outside the streamlined program, penalties can range from $10,000 per violation per year. The key is demonstrating that your failure to file was truly non-willful. If you go through the streamlined program and properly certify that your failure was non-willful, you can avoid the harsher penalties.

Thanks for the suggestion! I didn't even think about their guarantee. Do you know if their guarantee covers situations like this? And would you recommend going back now or waiting to see if the refund comes through first?

H&R Block's accuracy guarantee typically covers penalties and interest that result from preparer errors. In your case, since you caught the error before the return was finalized, it's a bit different, but they should still help you navigate the refund process. I'd recommend going back now rather than waiting. Explain what happened and ask them to contact the IRS on your behalf to confirm the overpayment will be refunded. They have a professional responsibility to help resolve this since it was their preparer's error. If the manager isn't helpful, you can escalate to their corporate customer service.

This is good advice! Also, check your mail regularly. Sometimes the IRS will send a paper check instead of direct deposit for refunds resulting from corrections or amendments, even if you originally paid electronically. I learned this the hard way when my refund check sat in a pile of mail for weeks.

I did call them actually! They basically just confirmed what the 1098 shows - that the actual payment to the county hadn't been made yet in 2023. They said they could provide a statement showing my escrow contributions, but they were clear that doesn't change when the tax was technically "paid" for IRS purposes. Frustrating but at least consistent with what everyone here is saying.

In TurboTax, the property tax paid will typically import automatically if you have your 1098 imported electronically. If not, you'd enter it manually in the "Deductions & Credits" section under "Home Mortgage Interest and Real Estate Taxes." Look for the section about Form 1098 and it will ask for the amount in Box 11 (which is where property taxes paid by your mortgage company appear).