Don't stress too much about this - it's actually one of the most common IRA mistakes people make! The good news is that you caught it and there are clear ways to fix it without major penalties. Since you're a full-time student with zero earned income for 2023, you'll need to remove the entire $6,000 contribution plus any earnings it generated. Contact your brokerage ASAP and tell them you need to process a "return of excess contributions" for tax year 2023. They'll handle the calculations and send you the proper tax forms. The original $6,000 comes back to you tax-free since you already paid taxes on it. Any earnings will be taxable income and subject to a 10% early withdrawal penalty, but that's still much better than the 6% annual penalty for leaving excess contributions in place. You have until April 15, 2024 to fix this (or October 15 if you file an extension). Once you graduate and start working, you can get back to maxing out your Roth IRA contributions. The fact that you're already thinking about retirement savings at 22 shows you're on the right track financially!

Don't panic - you've discovered this issue in time to fix it properly! This is honestly one of the most common Roth IRA mistakes, especially for students and young adults. The earned income requirement catches a lot of people off guard. Since you have zero earned income for 2023, you'll need to remove the entire $6,000 contribution as an "excess contribution." Here's what you need to do: Contact your brokerage immediately and request a "return of excess contributions" for tax year 2023. They have a specific process for this and will calculate any earnings that need to be removed along with your original contribution. The $6,000 you contributed will come back to you tax-free (since you already paid taxes on that money), but any earnings on that money will be taxable income for 2023 and subject to a 10% early withdrawal penalty if you're under 59½. You have until April 15, 2024 to complete this process without facing the 6% annual excess contribution penalty. If you need more time, you can file a tax extension to get until October 15, 2024. Don't feel stupid about this - the fact that you're prioritizing retirement savings at 22 shows excellent financial awareness! Once you graduate and start working again, you can resume your Roth IRA contributions. This is just a temporary setback, not a permanent problem.

I'm going through the exact same situation right now! My tax code just dropped from 1275L to 1121L completely out of the blue, and I've been frantically trying to figure out what could have caused it. This entire thread has been incredibly reassuring - it's clear I'm not alone in dealing with these unexpected changes. Reading through everyone's detailed experiences has really opened my eyes to how many different workplace benefits can trigger tax code adjustments. I'm now realizing I have a few small perks through work that I never considered taxable - a subsidized canteen, occasional taxi fares for late work, and access to a company discount scheme. After seeing all the examples shared here, I suspect one of these might be the cause. The timing pattern that so many people have mentioned is particularly interesting - it really does seem like HMRC is conducting more comprehensive reviews of employee benefits across different companies. It's both frustrating and somewhat comforting to know this appears to be part of a wider systematic review rather than something specific to my personal situation. I'm definitely going to check my Personal Tax Account first thing tomorrow using the "View your tax code calculation" section that everyone's recommended. After reading about those 90+ minute wait times, the online approach sounds infinitely preferable! This community discussion has been more helpful than anything I could find in HMRC's official guidance - thank you to everyone who shared their experiences and solutions!

I'm experiencing exactly the same issue! My tax code recently changed from 1275L to 1145L without any warning or explanation from HMRC. Reading through this entire discussion has been incredibly helpful - it's reassuring to know so many others are dealing with similar unexpected changes. Based on all the excellent advice shared here, I'm planning to check my Personal Tax Account first thing tomorrow using the "View your tax code calculation" section that everyone's mentioned. I have a few workplace benefits that I never considered might be taxable - things like a bike-to-work scheme loan, occasional overtime meal allowances, and a small Christmas bonus from last year that I'd completely forgotten about. The pattern of timing that multiple people have noted really suggests HMRC is conducting systematic reviews of company benefits. It's frustrating that these adjustments seem to happen retrospectively without much notice, but at least this thread has given me confidence about where to look for answers rather than panicking about the change. Thank you to everyone who's shared their specific experiences and solutions - this community discussion has been far more useful than any official guidance I could find. For anyone else dealing with similar confusion, it's clear that starting with the online account breakdown is the way to go before attempting those dreaded HMRC phone calls!

My experience with Dissomaster in my California divorce was that both attorneys and the mediator were confused about tax implications. They initially had me as HOH even though I only had 25% custody because I was claiming one child as dependent. What ultimately worked for us was getting a tax professional involved who specializes in divorce situations. She pointed out that the Dissomaster calculations would be significantly off if they used incorrect filing status. When corrected to Single (while still claiming one dependent), my support obligation was adjusted by almost $400/month! Make sure you address this before finalizing anything. The tax filing status makes a huge difference in the support calculations, and many mediators don't fully understand the difference between dependency exemptions and filing status requirements.

I've been a family law paralegal for 8 years, and I see this mistake ALL THE TIME. The tax filing status in Dissomaster has a significant impact on the final numbers. For California specifically, the court is supposed to use the tax filing status that each parent is "entitled to use" under federal law. If you only have 20% custody, you are NOT entitled to use Head of Household - period. Even if you're claiming a child as a dependent by agreement. Print out the IRS rules for HOH qualification (specifically the residency test requirement) and bring it to your next mediation. The mediator should correct your filing status to Single while still allowing you to claim one child as a dependent per your agreement.

I completely understand your anxiety about this situation - I went through something very similar about 18 months ago and had the exact same panic! The marketplace customer service rep was also unnecessarily dramatic with me, which made everything feel so much worse than it actually was. Here's what actually happened when I filed my taxes: I had overlapping Medicaid and marketplace coverage for about 3 months, and yes, I did have to repay some of the premium tax credits through Form 8962. However, because my annual income was around 260% of the federal poverty level, I hit the repayment cap and only had to pay back $900 instead of the full $1,800+ in credits I had received during those months. The most important thing to understand is that this is treated as a tax reconciliation issue, not fraud. The IRS processes thousands of these cases every year - it's routine paperwork for them, not a criminal investigation. I was never contacted directly by the IRS, never questioned about intent, and certainly never faced any criminal charges. My advice: Keep your current marketplace plan with tax credits since you're now eligible for them. Document exactly which months you had the overlap (sounds like June-August), and when you file your 2025 taxes, everything will be calculated automatically. The stress you're feeling right now is so much worse than the actual resolution will be!

I completely understand your panic - I was in almost the exact same situation last year with a 4-month overlap between Medicaid and marketplace coverage, and I was absolutely terrified that I'd get in serious legal trouble. Here's what actually happened: When I filed my 2024 taxes, I had to complete Form 8962 to reconcile the premium tax credits. I technically owed back about $1,600 in credits from those overlap months, but because my household income was around 275% of the federal poverty level, the repayment cap kicked in and I only had to pay back $900 maximum. The whole process was handled through normal tax filing - no special investigations, no contact from the IRS beyond the standard tax forms, and definitely no criminal charges. It's treated as a routine tax reconciliation issue that happens to thousands of people every year due to the confusing way these programs interact. A few key things that helped me get through this: 1) I kept my marketplace tax credits going forward since I no longer had Medicaid and was eligible for them, 2) I documented exactly which months had the overlap for my tax filing, and 3) I used tax software that automatically calculated everything on Form 8962. The customer service rep was way too dramatic - this is administrative paperwork, not a fraud case. You disclosed your existing coverage to Medicaid and they approved you anyway, which shows your good faith. Take a deep breath - you're going to be just fine!

Make sure you understand your lender requirements!!! I ended up refinancing at a MUCH higher rate because I violated my second home loan terms by renting without permission. Read your mortgage documents carefully - mine specifically said I had to occupy the property "significant amount of time each year" and prohibited rental during the first year.

Just went through this exact situation last month! One thing that hasn't been mentioned yet is the importance of establishing a clear "placed in service" date for your rental property. The IRS considers your property to be placed in service as a rental when it's ready and available for rent, not necessarily when you get your first tenant. This matters because it affects when you can start claiming depreciation and certain expenses. I made the mistake of thinking I could backdate everything to when I first decided to rent it out, but my CPA corrected me - it's when the property is actually ready for rental use (repairs done, furnished if applicable, listed for rent, etc.). Also, keep meticulous records of any improvements or repairs you make during the conversion process. Capital improvements get added to your basis for depreciation calculations, while repairs can be deducted immediately. The distinction can save you thousands in taxes over time!