I didn't even think to call my 401k administrator! That's a great idea. My plan does mention hardship withdrawals for medical expenses in the documentation, but when I requested the distribution I just did it through their online portal and didn't specify the reason. I'll definitely give them a call tomorrow and see if they can issue a corrected form with code 2. Would that completely eliminate the need to file Form 5329, or would I still need to do that?

If they can issue a corrected 1099-R with code 2 (which indicates an exception applies), you won't need to file Form 5329 at all to claim the exception. The code 2 tells the IRS that the distribution already qualifies for an exception to the 10% penalty. This would make your e-filing much simpler since you wouldn't have to deal with the additional form. Just make sure to wait for the corrected 1099-R before filing if they agree to issue one.

The health insurance premium exception is super helpful! I used it last year when I had to take an early distribution during a period of unemployment. You need to make sure you meet all the criteria though - you must have received unemployment compensation for 12 consecutive weeks.

That's a good point about the 12 consecutive weeks requirement. There are also some timing requirements - the distribution must be taken in the year you received unemployment compensation or the following year. And if you've been reemployed for more than 60 days, you no longer qualify for this exception.

Wait, so if my parents are paying my college tuition but I pay for my apartment and all living expenses, does that mean they're still supporting me for tax purposes? Tuition is like $15k but my living expenses are maybe $12k that I pay myself.

Yes, that's exactly right. If your parents are paying $15k for tuition and you're paying $12k for living expenses, then your total support is $27k. Since your parents are contributing more than half of that total ($15k > $13.5k), they are considered to be supporting you for tax purposes, not you supporting yourself. This is why the support test trips up a lot of students. Your tuition and education expenses are a major part of your total support calculation. So even if you feel independent because you pay your own rent and daily expenses, large education expenses can tip the scale in your parents' favor for tax dependency purposes.

No no no! That's tax fraud. You need to file state taxes where you actually LIVE, not where your mail goes. If you're physically living in California for most of the year, you're a California resident for tax purposes regardless of your mailing address. The state tax authorities aren't stupid - they can easily see if you're employed in California, have bank accounts there, are registered for school there, etc. Don't risk it!

Did you ever call the IRS or do anything special to get it moving? Or did it just suddenly update on its own?

It just updated on its own. I checked the "Where's My Refund" tool religiously every morning and one day it finally showed a deposit date. I never called or did anything special to move things along. I've heard from friends that calling doesn't usually speed things up anyway - they just tell you to keep waiting unless there's an actual issue with your return that needs to be addressed. So unless you think there might be a specific problem, it seems like waiting is unfortunately the only option.

I've noticed something similar! My husband and I filed separately (complicated situation) but on the same day. He got his refund after 3 weeks (no kids/CTC on his return) and mine took 6 weeks (claiming our daughter and the CTC). Definitely seems like these get sorted into different processing queues.

But wouldn't that only help for next year? OP already owes for this year's taxes, so isn't it too late to increase 401k contributions for the tax year that already ended?

You're totally right and I should have been clearer. For the current tax bill that's already calculated, increasing 401k won't help since those contributions had to be made during the calendar year. For the IRA though, you actually have until the tax filing deadline (usually April 15) to make contributions that count for the previous year. So while the 401k ship has sailed for last year, you can still make that IRA contribution up to the filing deadline and potentially benefit from the backdoor Roth strategy others mentioned. My bad for not being specific about the timing difference.

Does that work if you have a regular job too? I have W-2 employment but also make about $15k from a side hustle. Would that qualify?

What about if I mostly work from home but occasionally go to coffee shops to work? Would those miles count?

No, unfortunately trips to coffee shops to work generally don't count as business mileage since they're considered a personal choice rather than a business necessity. The miles that do count would be things like driving to meet a client, traveling to a location for a project, picking up supplies specifically for your business, or attending a conference related to your field. The key distinction is whether the travel is necessary for your business rather than a preference about where you do your regular work.

Wait really? I've been filing 1099-NEC income for 3 years and had no idea about this. Is there a minimum income requirement to qualify?