There is a possibility that payroll neglected to apply the two jobs checkbox in the computer.

Claiming single without "two jobs" has the exact same effect as claiming MFJ with "two jobs" (up to about $720k income), but less error-prone during data entry.

> other people in your immediately family are able to use your HSA dollars for their healthcare expenses

Only if they are your spouse or dependents.

Who you can spend HSA on does not depend on your/their insurance at all.

Call the IRS to discuss. You might be able to convince them that you did everything required by law to return the excess contribution - that the withdrawal was actually the return of excess contribution. It's just not coded properly on 1099-R.

Was there any change in account value between the 2021 contribution and withdrawal? For example, if account value immediately before contribution was $30000.00, contribution was $6000.00, and account value was $36000.00 immediately before withdrawal, then there is no change.

>I spoke with Vanguard who had said I should just take it back out, so I ended up transferring the money back into my bank account a few days later.

You were supposed to go through "return of excess contribution", not just a withdrawal. Withdrawal does not undo a contribution unless the net income attributable is also removed.

>Can I do the above and then also submit my 2022 taxes in parallel given that now I know that my 2021 basis was $5500 and that unblocks me from finishing up my 2022 taxes?

Yes.

>Also just curious do you think I'm in for a sizable IRS penalty based on the error?

No idea. Pay the tax you can calculate and wait for the late bill.

>Thanks just to double confirm, even though I rolled over $40k into the traditional IRA in 2020 (but did not contribute money), the basis for that year and earlier is STILL just $0?

Yes. Only a nondeductible contribution raises IRA basis. Notice that I didn't say nondeductible IRA contribution. I said nondeductible contribution. i.e. it can come from both IRA and non-IRA. If you messed up and rolled over the contribution portion of after-tax 401k to traditional IRA, that was a nondeductible contribution. This would be the only rare case of non-IRA-based IRA basis.

>Yes, but in that form, line 2 asks: "Enter your total basis in traditional IRAs." I do not know what I should fill out based on the above.

If you have never made any nondeductible contribution for tax year prior to 2021, your IRA basis for 2020 and earlier (2021 Form 8606 line 2) is $0.

>Also once I figure that out, I can fill out 8606 for year 2021. But for year 2022 I still need to do my taxes by the deadline, and its asking me for my basis from year 2021

Your IRA basis for 2021 and earlier is on 2021 Form 8606 line 14 after you finish redoing the form correctly.

You need to redo your 2021 Form 8606. Just go through the form's part 1 and 2 and answer all questions. Once that's done, redo your entire tax return because you had taxable conversion that you didn't include, which changes Form 1040 line 4b and everything downstream. Compare the old and the new tax returns and fill out Form 1040X.

Mail the signed Form 1040X and 2021 Form 8606.

> I only make $12K-$15K right now (I’m a student)

Roth (either Roth 401k, Roth IRA, or both) is indeed the best option for you right now.

Don't worry about the after-tax now. You literally can't contribute enough into Roth to even need to use the after-tax space.

>Unfortunately I only have a SIMPLE IRA account starting this year.

You cannot do a clean backdoor Roth for the forseeable future.

If you can get MAGI low enough by increasing workplace contributions (your SIMPLE IRA + spouse's workplace account), contribute directly to Roth IRA (recharacterize the two traditional IRA contributions you already made).

If you cannot get MAGI low enough, reverse your 2022 and 2023 IRA contributions. The procedure is called "removal of excess contribution"

Do you have a 401k? Ask them if you can roll over traditional IRA to your 401k. If the answer is yes, roll over only the pretax balance (anything but the $6500 you just contributed (2023) and the $6000 (2022) you didn't deduct) to the 401k, and convert all remaining balance (i.e. the $12500 you leave behind) to Roth IRA.

To make sure the account value doesn't change while you're doing the rollover, liquidate everything in the account first.

If you have more than one non-Roth IRA, they are considered one big account for this purpose.

You can possibly get the commission waived one time if you contact customer service.

You can buy VOO with no commission at Schwab since ETF trades are commission-free.

You can buy Schwab or affiliate-branded mutual fund at Schwab also with no commission.

But Schwab, Fidelity, and Vanguard are competitors, so they'll charge the max commission on each other's mutual funds. The commission is charged by the brokerage, not the fund.

>i just inheritated 10100 usd have an idea opinion?

$10k isn't a lot. Follow the Prime Directive.

>I MEANT 110K SORRY LOL

Then I refer you to one more wiki to read: Windfall wiki. Particularly:

>Don't burn through your money (buying cars, living an expensive lifestyle, housing you can't afford longer-term, risky investments, gifts, etc.). Fund those things as a part of your regular income and budget, not from the windfall.

If state law or employment contract requires them to pay at a particular rate, then they must be paid at at least that rate. Otherwise anything you get is better than nothing.

Follow instructions on W-4 to withhold properly.

You confused risk and volatility.

Total stocks index is volatile - it has high standard deviation among prices and also among returns. However, it is not risky when the appropriate time frame is followed. Pre-retirement and retirement span multiple decades, where total stocks index is suitable.

Ask the IRS for help.

W-2 - Additional, Incorrect, Lost, Non-Receipt, Omitted

Form W-2 and Form 1099-R (What to Do if Incorrect or Not Received)

If he has an IRS account, he can get his tax transcript, which might contain the missing W-2 that the IRS has received. Otherwise, he can reconstruct a substitute W-2 (called Form 4852) from pay stubs.

Find out what the gross distribution amount is. There should be a "distribution statement" that came with the check.

Contact your traditional IRA provider or your current 401k provider and ask them how to deposit an "indirect rollover". You either

• deposit the check from the old 401k into personal checking account and write a new check with the gross amount to rollover, or
• write a check covering the difference between the old 401k's check and the gross distribution

Send the check(s) and a copy of the distribution statement to the traditional IRA provider or current 401k provider.

(Yes, you are paying the difference out of pocket for now, but you'll get the withheld tax refunded when you file (1 year from now).)

>Edit: what if I just put it into my personal Roth IRA since the taxes have already been taken? And then select 2022 rolll over instead of 2023 contributions? Can I do that?

You still have to rollover the gross distribution to avoid the 10% penalty. This is not much different from rolling over to traditional IRA, with the exception that you'll be paying taxes on the rollover.

Since the $40k is already in a bank account, it'll be an ACH transfer, which you can initiate at Marcus. You just need to link your existing checking account on the Marcus website/app first.

The more serious you can prove your intent of running a business, the better chance the IRS treats it as a business despite lack of profit at start.

IRS - Checklist for starting a business

SBA - 10 steps start your business

Read the Self employment wiki. Record keeping is important when running a business. Use a dedicated bank account and keep detailed records.

Turbotax might charge you more for having a business, so look into other options in the tax software megathread.

You can have deductible net operating losses when you are starting out.

If your mortgage interest* + state/local taxes** + 501c3 donations > standard deduction, yes, you can reduce your taxable income. However, treat this as a discount on your mortgage interest - you're basically discounting the interest rate by your tax bracket. Don't buy a home just because you can save taxes. Buy a home only because it makes sense in your situation, and only when you are able to maintain it and deal with repairs.

*Capped at the first $750k borrowed

**Capped at $10k

Right. You won't know the result of a current or future auction until it has ended. (Don't worry, you'll never pay more than the face value of the bill.)

What you see on Fidelity have already left auctions and are being traded on the secondary market.