Thanks for this! Definitely individual coverage in my case. So basically I just need to override TurboTax and report the full $200.08 as an excess contribution withdrawal, right? Did you have any issues with the IRS after filing that way?

Yes, exactly - override TurboTax and report the full $200.08 as an excess contribution withdrawal on line 13 of Form 8889. I had zero issues with the IRS after filing that way. The key is that you've already withdrawn the excess amount, which is the most important step. The reporting just needs to match what actually happened. The IRS receives Form 5498-SA directly from your HSA custodian, so they'll already know the actual contribution amount. Your tax return just needs to match that reality. I was worried too, but everything processed normally and I received my refund without any questions.

Did you need to file any extra forms with the HSA provider after withdrawing the excess? My HSA bank is telling me I need to specifically request a "return of excess contributions" rather than just a regular withdrawal.

Did your sister mention anything about whether this affects how quickly we'll get our refunds once Feb 15th hits? Like if we're already in the system, do we get processed faster?

My sister says early filers definitely get processed faster once the Feb 15th date passes. The IRS essentially creates a queue of all the PATH Act returns (ones with EIC/CTC), and they process them in roughly the order received once that date hits. So being already in the system and "accepted" means you're at the front of that line. She also mentioned that most people with straightforward returns who file electronically and choose direct deposit usually see their refunds within 7-10 days after Feb 15th if they filed in January. So you could potentially see your money by Feb 22-25th.

That's totally normal this time of year. Mine was accepted on 1/15 and shows the same thing. It won't update to "Refund Approved" until after they can actually process the EIC/CTC returns after Feb 15th. It's frustrating, but at least we know they have it!

Actually that $12,950 figure is outdated. For 2025 the filing threshold for dependents with earned income is estimated to be around $13,850 due to inflation adjustments. But you're right about the general point - many teen workers won't hit the filing requirement.

Thanks for the correction! You're right that the numbers adjust each year with inflation. The important thing for the original poster to understand is that there's a threshold below which filing isn't required, but that doesn't change the need to complete the W4 accurately for employer withholding purposes.

I tried using it but got super confused by all the questions. Maybe I'm not tech savvy enough but it seemed to assume I knew a lot of tax terminology already. Ended up just taking my best guess on the W4.

Yes! I've been self-employed for years. The basic rule is if you expect to owe $1,000+ in taxes, you should make quarterly payments. Use Form 1040-ES to calculate. The easiest method is to take your total expected tax for the year, divide by 4, and pay each quarter. Due dates are April 15, June 15, Sept 15, and Jan 15 of the following year. I personally set aside 30% of all my freelance income in a separate savings account to cover both income tax and self-employment tax (15.3% for Social Security/Medicare). That way I'm never caught short when payments are due!

Thanks so much! I didn't realize the cutoff was only $1,000 - I'll definitely hit that. Is there a penalty if I miss the first quarter payment but make the rest on time? I'm just learning about all this now. I love the idea of setting aside 30% in a separate account - that makes so much sense. Will definitely be doing that going forward. Do you use any specific software or just calculate it manually with the 1040-ES?

Extensions only give you more time to FILE, not more time to PAY. So you still need to estimate and pay what you think you'll owe by the regular April deadline, or you'll face penalties and interest. I file extensions most years because I have some investments that don't get their paperwork out until late March, and it's super easy. Just file Form 4868 - can do it online through IRS Free File or most tax software. It gives you until October 15 to file the actual return.

That's an interesting angle I hadn't considered. This is my first time doing seller financing, but I do have two other rental properties that I might sell in the next few years. Would doing just 2-3 of these transactions be enough to qualify as a business? Or would I need to do this more regularly?

Just 2-3 transactions over several years would probably not be enough to qualify as being in the lending business. The IRS would likely view that as investment activity rather than a business. To be considered a business, you'd typically need to show more regular activity and perhaps even advertise your services or create a formal business structure. Most people who do occasional seller financing end up treating it as investment activity and reporting it on Schedule B with the associated expenses offsetting the interest income. If you were doing multiple loans per year and actively seeking out opportunities to provide seller financing, that might cross the threshold into business territory.

I've done seller financing for several properties and found that H&R Block's premium version handled it better than TurboTax. It specifically asked about loan origination costs and gave clear guidance on amortizing them over the loan term. It also had a specific section for investment expenses related to interest income.