Don't forget you need to keep track of these payments yourself!! I learned this the hard way. TurboTax doesn't automatically know about that check you wrote to your state last year. You have to manually enter it when you get to the itemized deductions section. Same goes for any estimated state tax payments you made. Keep records of EVERYTHING because it's super easy to forget by the time next tax season rolls around.

This is such a common confusion! I went through the exact same thing last year. The key thing to remember is that you deduct state taxes in the year you actually PAID them, not the tax year they were for. So your $650 payment from last year gets deducted on THIS year's federal return if you itemize. But here's what tripped me up initially - make sure you're not double-counting anything. If you had state taxes withheld from your paychecks last year AND paid additional taxes when you filed, you can deduct both amounts, but they go on different years' returns. Also, don't forget about the $10,000 SALT cap that others mentioned. If you live in a high-tax state and own property, you might hit that limit pretty quickly between state income taxes and property taxes. I ended up barely under the cap, so every dollar of state tax deduction actually helped me. Definitely worth running the numbers both ways (itemized vs standard deduction) to see which gives you the better result!

You're absolutely right that you can file Form 709 separately from your 1040! This is actually the most common approach since Form 709 must be paper-filed (no e-filing option available) while you can e-file your 1040 through TurboTax as usual. Your planned approach won't cause any issues with the IRS. Just make sure to: - Mail Form 709 to the correct IRS service center based on your state (check the form instructions) - Keep the same April 15th deadline for both forms - Consider using certified mail for Form 709 to have proof of delivery However, before you file Form 709, I'd definitely verify whether it's actually required in your situation. You mentioned paying for your nephew's college tuition directly to the school - if you literally wrote the check to the educational institution (not to your nephew), this qualifies for the unlimited educational expense exclusion under Section 2503(e) of the tax code. This means no Form 709 would be needed regardless of the amount. The distinction is crucial: direct payment to school = no filing required, but giving money to your nephew who then pays = Form 709 needed if over the annual exclusion. If you're unsure about the exact payment method or have other gifts to report, it might be worth consulting with a tax professional to make sure you're handling everything correctly!

You can absolutely file Form 709 separately from your Form 1040 - that's actually the standard approach since Form 709 must be paper-filed while your 1040 can be e-filed through TurboTax as planned. Just a heads up though - before you go through the hassle of filing Form 709, you should double-check if it's actually required in your case. Since you mentioned paying your nephew's tuition "directly to the school," this could qualify for the educational expense exclusion under IRC Section 2503(e). If you literally paid the educational institution directly (wrote the check to the school, not to your nephew), then no Form 709 is needed regardless of the amount. The key distinction is: - Payment directly to educational institution = no Form 709 required - Money given to nephew who then pays school = Form 709 needed if over annual exclusion If you do need to file Form 709, make sure to mail it to the correct IRS processing center (check the form instructions for your state's address) and consider using certified mail for proof of delivery. Both forms share the same April 15th deadline. Hope this helps clarify things!

I went through this exact same situation with HSA Bank last year and it's incredibly frustrating that they don't help with the calculation. Here's what I learned: Since your excess contribution happened on December 30th, you're actually in a pretty good position - there's only been 2 days for any gains/losses to accumulate. The fact that the calculator is showing less than your $82.49 excess means your HSA investments had a small loss during those two days. You should definitely withdraw the calculated amount (not just the $82.49). The IRS requires you to remove the excess contribution adjusted for any proportional gains or losses. In your case, the loss actually works in your favor since you'll withdraw slightly less than what you contributed. Make sure to: 1. Request that HSA Bank code this as an "excess contribution removal" on your 1099-SA 2. Complete the withdrawal before you file your 2024 taxes 3. Be prepared for HSA Bank's $25 processing fee Since you haven't filed your 2024 taxes yet, you're well within the deadline and won't need to worry about the 6% excise tax or Form 5329 as long as you handle this promptly.

I just went through this exact same mess with HSA Bank a few months ago - they're absolutely terrible at helping customers with these calculations! The good news is that since your excess happened so late in the year (December 30th), you're dealing with minimal earnings/losses. Here's what you need to know: If the calculator is showing a withdrawal amount less than your $82.49 excess, that means your HSA investments had a small loss during those final two days of the year. This actually works in your favor - you only need to withdraw the calculated amount, not the full excess. The IRS formula is: (Excess Contribution) × (Net Income ÷ Fair Market Value). Since your account value dropped slightly, the "Net Income" part is negative, reducing your required withdrawal. Make sure to: - Request HSA Bank code this as "excess contribution removal" - Get it done before filing your 2024 taxes - Budget for their annoying $25 processing fee Since you're handling this in January and haven't filed yet, you're well within the deadline and won't face the 6% excise tax. The withdrawal will show on a 2025 1099-SA but corrects your 2024 contribution limit issue.

Dont forget to factor in legal protections too not just taxes! Having LLC own C-Corp creates an extra layer between u and liabilities which can be good. But also makes raising more $$ more complicated cause investors gotta go thru LLC to get to C-Corp. I had similar setup and ended up with C-Corp as parent instead, with an LLC subsidiary for riskier parts of business. made subsequent funding rounds WAY easier. just my 2 cents

This is a really complex area and I'd strongly recommend getting professional advice, but I can share some insights from my experience with similar structures. One major consideration that hasn't been fully addressed is the potential Section 351 tax implications when you contribute assets from your LLC to the new C-Corp. If you're transferring property (including IP, equipment, or other business assets) from your LLC to the C-Corp in exchange for stock, you'll want to make sure this qualifies for tax-free treatment under Section 351. Otherwise, you could trigger immediate taxable gain recognition. Also, regarding the double taxation issue - while it's true that C-Corp dividends create double taxation, many startups avoid this by not paying dividends at all. Instead, they reinvest profits back into the business or compensate key employees (including yourself) through reasonable salaries and bonuses, which are deductible to the C-Corp. Another strategy to consider is having the LLC provide legitimate services to the C-Corp (as mentioned earlier) - things like administrative services, office space rental, or consulting. This creates a deductible expense for the C-Corp and income for the LLC, which can help optimize the overall tax burden. Just make sure all inter-company transactions are properly documented and at fair market value to avoid IRS scrutiny!

One thing to check - did you update your marketplace application when you got your job? Even though you cancelled the plan, you're supposed to report income changes to the marketplace separate from cancelling. If you didn't do that, it could affect how the tax credit is calculated.

I see you're dealing with a really frustrating situation, but you're definitely not alone in this! The premium tax credit reconciliation process can be confusing, especially when your circumstances change mid-year like yours did. The key thing to understand is that the IRS looks at your entire year's income to determine what credit you were actually eligible for, even though you only had marketplace coverage for part of the year. Since you went from $0 estimated income to having job income starting in May, your annual income ended up higher than what was used to calculate your advance credits. However, there's good news - you should definitely check if you qualify for repayment limitation caps on Form 8962. These caps are based on your final annual income as a percentage of the federal poverty level. If your total annual income puts you under certain thresholds (like 200%, 250%, 300%, or 400% of FPL), your repayment could be capped at much less than the full amount. Make sure you're completing Part III of Form 8962 correctly - this is where the repayment limitations are calculated. The form should automatically determine if you qualify for a cap based on your income level. You did everything right by canceling when you got employer coverage, so don't feel bad about following the rules!