This is a really tricky situation that unfortunately happens more often than it should. The marketplace representative should not have changed your answer if it wasn't accurate - that's created a big problem for you now. Here's what you need to know: If your employer offered you health insurance that meets the IRS "affordability" test (costs less than 9.12% of your household income for employee-only coverage in 2024) AND provides minimum value coverage, then you're not eligible for Premium Tax Credits on marketplace plans. The fact that CVS's coverage might be terrible doesn't matter for tax purposes - only whether it meets those technical requirements. When you file your 2024 taxes, you'll need to complete Form 8962 to reconcile the PTCs you received throughout the year. The good news is there are repayment caps based on your income level if you're under 400% of the federal poverty level. For 2024, that's about $58,320 for a single person. The caps range from $325 to $2,825 depending on your income bracket. If you're over 400% FPL, unfortunately you'd have to repay the full amount. I'd recommend calculating whether your employer's coverage was actually "affordable" based on the 9.12% test. If it wasn't affordable, you might still be eligible for the PTC. Either way, you'll want to get professional help with Form 8962 - it's one of the most complex tax forms out there.

I'm really sorry you're dealing with this stress! This is unfortunately a very common situation that catches a lot of people off guard. The marketplace representative definitely shouldn't have changed your answer without explaining the tax implications. Here's what you need to focus on: First, calculate whether CVS's insurance offer was actually "affordable" under IRS rules. Take your 2024 household income and multiply by 9.12%, then divide by 12. If your monthly premium for employee-only coverage through CVS would have been less than that amount, then their offer was considered affordable and you'll likely need to repay some or all of your Premium Tax Credits. The silver lining is the repayment caps if your income is under 400% of the federal poverty level (about $58,320 for single filers in 2024). Depending on your income bracket, you might only have to repay between $325-$2,825 instead of the full $4,860+ you received. When you file your taxes, you'll need Form 8962 to reconcile everything. This form is notoriously complex, so I'd strongly recommend getting help from a tax professional who has experience with Premium Tax Credit reconciliation. They can also help you explore any legitimate deductions that might lower your adjusted gross income and potentially reduce your repayment obligation. Don't panic - while this is definitely not ideal, there are protections in place and ways to minimize the impact. Just make sure you handle it properly on your tax return.

I'm facing a similar issue with multiple W-2s and trying to max out my 401k! Reading through all these responses has been incredibly helpful, especially learning that FICA taxes are absolutely non-negotiable for W-2 employees. One thing I discovered that might help you - have you checked if your employer offers "true-up" contributions for your 401k? Some companies will make additional matching contributions at year-end if you didn't receive the full match due to hitting the annual limit early in the year. This could give you more flexibility in how you time your contributions between the two paychecks. Also, since you mentioned benefits coming out of the lower-income W-2, you might want to calculate whether switching some of those pre-tax deductions (like health insurance) to the higher-income W-2 would create enough breathing room in the smaller paycheck for the 401k contributions you need. Sometimes just moving a few hundred dollars in deductions can make the difference. The Social Security wage base limit advice from others here is spot-on too - if you're anywhere close to $168,600 total income across both W-2s, you'll get some natural relief from the 6.2% Social Security tax stopping, which could be perfect timing for boosting those final 401k contributions of the year.

I've been following this thread closely since I'm dealing with the exact same situation - multiple W-2s from one employer and struggling to max out my 401k before year-end. The consensus here is absolutely correct: you cannot opt out of FICA taxes as a W-2 employee, period. However, I want to add something that might help with your specific cash flow issue. Have you considered asking your employer about implementing a "payroll advance" or "earned wage access" program for the paycheck where you're short on funds? Some companies offer this as an employee benefit, allowing you to access a portion of your earned wages before the regular payday. This wouldn't eliminate your FICA obligations, but it could provide the temporary cash flow bridge you need to increase your 401k contribution on that smaller paycheck without waiting for the Social Security wage base relief that others have mentioned. Also, I second the advice about coordinating with payroll to move other pre-tax deductions between your W-2s. I successfully moved my health insurance premiums from my smaller paycheck to my larger one mid-year, which freed up exactly the amount I needed for my final 401k push. The process took about two weeks and required some paperwork, but it was totally worth it. The spreadsheet tracking idea for the Social Security wage base limit is something I'm definitely implementing - thanks to everyone who suggested that approach!

Something similar happened to me. What I did was create an ID.me account which the IRS uses for verification. Even if you don't remember your exact address, the ID.me verification includes other methods like uploading your ID and doing a video chat verification. Once verified there, I could access my IRS account and see/update my address info.

I went through this exact same nightmare about 6 months ago! What finally worked for me was a combination approach. First, I called the IRS transcript line at 1-800-908-9946 early in the morning (like 7:30 AM) when wait times are shorter. When they couldn't verify me with the addresses I provided, the agent actually told me I could visit a local Taxpayer Assistance Center with two forms of ID and they could help me access my account records and update my address. I scheduled an appointment at the TAC office, brought my driver's license and passport, and they were able to pull up my account and show me what address they had on file (turns out it was an address from 2019 that I had completely forgotten about). They updated it on the spot and printed my transcripts right there. The whole visit took about 45 minutes. If you have a TAC office nearby, I'd definitely recommend this route over trying to guess addresses online. You can find locations and schedule appointments at irs.gov/help/contact-your-local-irs-office. Good luck with your mortgage application!

I've been dealing with this exact same situation! As someone who manages several short-term rentals, I initially made the same mistake of issuing 1099-NECs instead of 1099-MISCs. The confusion is totally understandable because we think of property management as providing a service, but the key is what the payment represents. When you're distributing rental income that belongs to the property owners, you're not paying them for services - you're returning their rental income. This should go on 1099-MISC Box 1 (Rents), not 1099-NEC. The difference is huge for the recipients because 1099-NEC income gets hit with self-employment tax (15.3%) while rental income on Schedule E typically doesn't. To answer your question about correcting the forms - yes, you can void the 1099-NEC and issue a corrected 1099-MISC. I had to do this last year for several owners. Just make sure you're still within the filing deadlines. Most of my owners were actually grateful when I corrected this because it saved them significant money on their taxes. It's definitely worth making the change going forward!

Great question about the correction process! When you void a 1099 form, you typically need to file a corrected version with "CORRECTED" checked on the new form rather than just voiding it. The IRS wants to see both the correction and what you're correcting it to. You'll submit the corrected 1099-MISC through the normal filing process (either electronically or by mail) and the system handles the rest. As for amended returns, several of my property owners did choose to file Form 1040X for the past three years to recover overpaid self-employment taxes. The savings were substantial - we're talking about potentially recovering 15.3% of all that rental income that was incorrectly reported as self-employment income. I provided them with a letter explaining the error and the corrected forms to support their amended filings. One tip: I created a simple spreadsheet showing each owner exactly how much they could potentially recover by filing amended returns for each year. This helped them decide if it was worth the effort. For most of them, the savings were in the thousands of dollars, so it was definitely worthwhile. The key is being proactive and transparent with your clients about the mistake and the opportunity to recover those overpaid taxes.

Has anyone dealt with investment allocation when consolidating HSAs? We've been running into this issue where my wife's HSA has good investment options but mine has terrible ones with high fees.

This is exactly the kind of optimization question I love seeing! You're on the right track thinking about this strategically. One thing to consider that hasn't been mentioned - if you're self-employed and have variable income, having your wife handle the full HSA contribution through her W-2 job provides more predictable cash flow planning. Her payroll deductions are steady and automatic, while your business income might fluctuate seasonally. Also, don't forget about the HSA catch-up contributions if either of you will be 55+ this year - that's an extra $1,000 you can contribute on top of the family limit. For the investment allocation question, I'd suggest treating your HSAs as part of your overall portfolio allocation rather than trying to optimize each account separately. Since you can both use either HSA for family medical expenses, think of them as one combined healthcare investment pot when deciding on asset allocation. The solo 401k route for your business income is probably the smart move here - especially since you mentioned not having enough total income to max both. The 401k limits are much higher and you get both employee and employer contribution opportunities as a business owner.