Does anyone know if receiving a 1095-C affects your tax refund? I declined my employer's coverage because my spouse's plan was better, but my tax refund was way less than last year.

This is a really common source of confusion! The 1095-C form serves multiple purposes for the IRS, and one key thing to understand is that it's not just about what coverage you actually had - it's also about what coverage was available to you. Your employer is required to report the "Employee Required Contribution" (line 15) for the lowest-cost self-only coverage that meets minimum requirements, regardless of whether you enrolled or not. This information helps the IRS determine if you were offered "affordable" coverage, which can impact things like eligibility for premium tax credits if you got coverage through the Health Insurance Marketplace instead. The $111 amount you're seeing is essentially a data point for tax calculations - it doesn't mean you were charged that amount. Since you declined coverage and aren't seeing payroll deductions, everything sounds correct on your end. Just keep the form with your tax records, as you may need to reference it when completing your tax return to answer questions about health coverage offers from your employer.

Has anyone dealt with the paperwork for this? My accountant says there's a form 8606 I need to fill out for the backdoor Roth even if I fix the pro rata issue by year-end. Is that right?

Just want to add a tip that saved me a lot of headaches - if you do decide to do the reverse rollover to your current 401k, make sure to ask your plan administrator about any restrictions on the money once it's in there. Some plans have waiting periods before you can take loans or hardship withdrawals from rollover funds, which might matter if you're counting on that flexibility. Also, double-check that your 401k investment options are decent - sometimes the fees and fund choices in employer plans aren't as good as what you had in your IRA. But for avoiding the pro rata rule, it's usually still worth it even if the investment options aren't perfect!

Just went through this exact situation last year with my own short-term disability claim. One thing that really helped me was keeping detailed records of everything - paystubs showing premium deductions, all correspondence with the insurance company, and any HR documents about the disability policy. Also wanted to mention that if you're getting conflicting information or missing tax forms, don't wait until the last minute to sort it out. The IRS can be pretty understanding about disability payment reporting issues if you're proactive about getting the right documents, but it becomes a bigger headache if you wait until after you've already filed. For your specific situation with the manufacturing injury - make sure you also check if any workers' compensation payments are involved, as those have completely different tax rules (usually not taxable at all). Sometimes there's overlap between disability and workers' comp that can complicate things.

This is such helpful information, everyone! I'm dealing with a similar situation and had no idea about the premium payment distinction. One thing I wanted to add - if you're still employed but on disability, check your paystubs carefully during the disability period. Sometimes employers continue certain deductions (like health insurance) but stop others (like disability premiums) while you're out on claim. This can actually affect the tax treatment if your premium payments were interrupted. Also, don't forget to check if your disability payments count toward your Social Security earnings record. Short-term disability usually doesn't, but some policies have provisions where a portion gets reported to SSA. This doesn't change the tax treatment but it's good to know for your future Social Security benefits calculation. Miguel, definitely call both your employer's benefits department AND the insurance companies directly. Get everything in writing about who paid what premiums and what tax forms you should expect. Better to over-document this stuff than scramble at tax time!

I just ignored a $8.50 use tax I owed last year and nothing happened lol. The state has bigger tax cheats to go after than someone who didn't pay a few bucks on an online purchase. But technically yes you're supposed to pay it.

For your specific situation with the $5.40, here's my practical advice: Yes, technically you're required to pay use tax, but realistically the enforcement risk for such a small amount is essentially zero. However, I'd recommend getting into good habits now. Most states let you report use tax on your annual income tax return - there's usually a line where you can enter the total amount of use tax owed for the year. You can either track individual purchases or use your state's estimation table based on income (much easier). Since you're just starting to deal with this, I'd suggest setting up a simple system: keep a running tally of untaxed online purchases throughout the year, then report the total when you file your state taxes. The deadline is typically the same as your income tax filing deadline. Don't stress too much about this particular $5.40 purchase, but use it as a learning experience for bigger purchases in the future. Better to understand the system now than be caught off guard with a larger amount later!

I'm so sorry for your loss, Nolan. Going through a loved one's belongings is one of the hardest things to do, and having to think about tax documentation on top of everything else can feel overwhelming. Your great aunt is absolutely right to insist on proper receipts - those deductions can really add up with estate cleanouts. The good news is you don't need to make this harder than it has to be. From everything I've seen, the IRS is looking for reasonable descriptions, not exhaustive inventories. Something like "Women's clothing - 10 items including blouses, pants, sweaters, good condition" or "Kitchen items - cookware, utensils, small appliances, fair condition" is perfectly adequate. You're giving them enough detail to understand what was donated without driving yourself crazy counting every fork. A couple practical tips that might help: - Take a quick photo with your phone before loading donations in the car (wish I'd thought of this years ago!) - Do rough counts as you're packing rather than trying to remember later - Group similar items together on the receipts - Note general condition honestly Most importantly, remember that you only benefit from itemizing if your total deductions exceed the standard deduction threshold. With estate donations you might well get there, but it's worth doing a rough calculation first. Take care of yourself during this difficult time. The paperwork can wait when you need space to grieve.

I'm so sorry for your loss, Nolan. Clearing out a loved one's home while grieving is incredibly difficult, and it sounds like your great aunt is really looking out for you by pushing for proper documentation. Based on everyone's advice here, you're already doing great by collecting those blank receipts as you go. For the IRS, you really don't need to list every single item - general categories with rough counts work perfectly fine. Something like "Women's clothing - 12 pieces including dresses, blouses, pants, good condition" or "Household items - kitchenware, linens, small appliances, fair condition" gives them what they need. The photo tip that several people mentioned is brilliant - I wish I'd known about that when I was in a similar situation. Even just a quick phone snapshot before loading your car would make filling out those receipts so much easier later. One thing worth checking first: make sure your total itemized deductions (donations plus mortgage interest, state taxes, etc.) will exceed the standard deduction ($14,600 for single filers in 2025). With estate cleanouts the amounts can add up quickly, but it's worth doing a rough calculation to see if itemizing actually benefits you. Take your time with this process and don't feel like you have to tackle everything at once. The paperwork will be there when you're ready, and your grandmother would probably want you to take care of yourself first. You're handling an incredibly difficult situation with grace.