Has anyone dealt with the state tax implications of QBI loss carryforwards? My state doesn't conform to the federal QBI deduction and I'm getting conflicting advice on how to handle the loss carryforward on my state return.

I went through a very similar situation when my mom had to close her accounting practice due to health issues. The mandatory QBI loss carryforward felt really unfair at the time, especially since we knew she'd never have enough business income to use it all up. One thing that helped us was keeping detailed records of exactly how the loss was being applied each year. We created a simple spreadsheet tracking the original loss amount, how much was used each tax year, and the remaining carryforward balance. This made it much easier when preparing returns and helped us optimize other tax planning decisions. Also, don't overlook that if your father ever does any consulting work in the future - even small projects - that income could help absorb some of the carryforward. Sometimes retirees end up doing occasional work that qualifies as business income. The IRS agent I spoke with mentioned that even minimal business activity can help utilize these losses over time. I'm sorry to hear about your father's diagnosis. These tax complications are the last thing families need to deal with during difficult times.

I've tried both FreeTaxUSA Deluxe and TurboTax Live. Honestly, FreeTaxUSA's support is nowhere near the level of TurboTax's Live service where you can actually video chat with a CPA who reviews your return. But that's reflected in the price - TurboTax costs way more. For the price, FreeTaxUSA Deluxe is decent value. Just go in with the right expectations - they'll help you understand concepts and where to input information, but they won't review your work or give personalized advice based on your specific numbers.

So, what about FreeTaxUSA Pro support, anyone had that package ?

Has anyone else noticed that TurboTax charges you for the "deluxe" version if you have multiple W2s? Such a ripoff. H&R Block online lets you enter multiple W2s on their free version. Just FYI for anyone in this situation.

This is a great question and you're definitely not alone in this situation! The most common reason for receiving multiple W-2s from the same employer is that your company likely uses different Employer Identification Numbers (EINs) for different purposes - maybe different divisions, or they went through a merger/acquisition during the year. Since you mentioned the numbers add up correctly when combined, that's actually a good sign that everything is legitimate. When you file with TurboTax, you'll simply enter both W-2s as separate forms. The software will walk you through adding a second W-2 and will handle the calculations properly. A few things to double-check before filing: - Make sure your personal info (name, SSN, address) is identical on both forms - Verify the employer names are the same (or reasonably similar if there was a name change) - Look at Box b on both forms - you'll likely see different EIN numbers, which explains the split You don't necessarily need to contact HR unless you notice errors in your personal information or the wage amounts seem wrong. This is a normal tax situation that happens to thousands of employees each year, especially at larger companies with complex corporate structures.

Has anyone here actually been audited for the HSA last month rule? I'm wondering how strict the IRS is about the testing period if something unexpected happens like job loss.

This is such a helpful thread! I'm in a similar situation but with a twist - I had individual HDHP coverage for the first 8 months of 2024, then switched to family coverage in September when I got married. So I had family HDHP on December 1st, 2024. From what I'm reading here, I should be able to contribute the full family maximum of $8,300 for 2024 under the last month rule, as long as I maintain some form of HDHP coverage through all of 2025 (which I plan to do with continued family coverage). But here's my question - since I actually had HDHP coverage for the entire year (just different types), does that make the testing period requirement less risky for me? Or is it the same risk as someone who only had coverage for part of the year? I'm trying to decide between the safe pro-rated approach vs. taking advantage of the full contribution amount.

This is such a common confusion! I went through the exact same thing when I cashed out my 401k a few years back. The key thing to remember is that the 20% withholding they took is just an estimate for your regular income taxes - it has nothing to do with the 10% early withdrawal penalty. Here's what will happen when you file: You'll report the distribution on your tax return, and the IRS will calculate your actual tax liability on that $14,000 (plus your other income). If your tax rate is lower than 20%, you might get some of that withholding back. But then they'll tack on the 10% penalty ($1,400 in your case) as an additional tax. The good news is that Form 5329 isn't as scary as it sounds - it's pretty straightforward once you understand what you're doing. Just make sure to keep all your documentation from the 401k distribution handy when you file!

I had my 401k provider take extra tax out when I got the distribution to account for the 10%. How can I get that to apply to that 10% penalty?