Can someone explain how the 6% penalty actually works? If OP contributed like $3000 to their HSA without being eligible, is the penalty just 6% of that amount ($180)? Might be easier to just pay that than go through all the hassle of corrective distributions especially if they already used the money.

I went through this exact situation two years ago and it's definitely stressful! A few things to keep in mind that might help: First, time is critical - you have until your tax filing deadline (including extensions) to remove the excess contributions and avoid the penalty entirely. Since you mentioned you're filing now, you still have time if you act quickly. Second, even though you spent the HSA money, you can still do a corrective distribution. You'll need to deposit funds back into the HSA first (equal to your excess contributions), then immediately request the corrective distribution from your HSA administrator. Yes, it's a bit of a hassle, but it's way better than paying 6% annually. Your HSA administrator should be able to help with the paperwork - most have dealt with this before. They'll need to calculate any earnings on the excess contributions too, which also need to be withdrawn. The key thing to remember is that using the money for qualified medical expenses doesn't fix the eligibility issue. The IRS is strict about who can contribute to HSAs, but they do give you options to correct mistakes if you act within the deadline. Don't panic - this is fixable! Just contact your HSA administrator ASAP to start the corrective distribution process.

I just went through this exact situation last month! The IRS will definitely send your verification letter to the address on your 2023 tax return (the one you filed February 3rd), not what's currently showing on their website. Their online portal can take 4-6 weeks to update after processing, so don't worry about the address mismatch you're seeing there. Since you filed over two months ago, your return should be fully processed and the letter will go to your filing address. I waited about 8 days for mine to arrive. If you need faster access, you could try the ID.me verification route through their website - it's instant and bypasses the mail entirely. Just make sure someone can check the mailbox at your filing address if you're not there regularly. The letter comes in a standard white Treasury envelope, so it's pretty easy to spot.

I dealt with this same issue about 6 months ago when I moved mid-tax season. The good news is that the IRS will send your verification letter to the address on your most recently filed return - so in your case, it should go to whatever address you used when you e-filed on February 3rd. The website showing your old address is totally normal; their online systems are notoriously slow to update and can lag behind their actual processing systems by weeks or even months. Since you filed over 2 months ago, your return should definitely be processed by now. I'd also suggest trying the ID.me verification option if you need immediate access - it's much faster than waiting for mail and doesn't depend on which address they have on file. The whole process took me about 20 minutes and I was able to access my account right away. Just make sure you have a current photo ID handy for the verification process.

Another option to look into if commuting costs are high - check if your employer offers any commuter benefits! My company lets us use pre-tax dollars for parking and public transit through our benefits program. It's not as good as a tax deduction but it does reduce my taxable income a bit.

I totally feel your frustration with the commuting costs! As everyone has confirmed, those daily miles to your regular office unfortunately aren't deductible. But since you mentioned you've been doing this 3-year commute, you might want to explore some alternatives to help with those costs. One thing that helped me was calculating whether it would actually be cheaper to move closer to work or find a job closer to home. With 64 miles daily (32 each way) at current gas prices plus wear and tear, you're probably spending $4,000+ annually just on commuting costs. That's a significant chunk of money that could go toward rent in a closer location or justify negotiating remote work days. Also, keep detailed records of ANY business travel you do beyond your regular commute - even small trips to pick up office supplies or attend off-site meetings. Those miles at 67 cents each can add up to real deductions. And definitely ask HR about commuter benefits or flexible work arrangements if those are options at your company!

Thanks for starting this thread! I'm dealing with the exact same situation - filed my return about 9 days ago through TurboTax and I've been refreshing that Where's My Refund page like it's my job. This is my first refund in years too, so I had no idea what to expect timeline-wise. Reading through all these responses has been incredibly helpful. The tip about checking your tax transcript is amazing - I just pulled mine and there are so many more details than the basic status tool shows. Even though I'm still showing "return received," I can see processing codes that indicate things are actually moving along behind the scenes. I claimed some medical expenses and charitable deductions this year that I didn't have in previous years, so based on what everyone's saying, that might extend my processing time a bit. But at least now I understand that the timeline really depends on your specific situation rather than just being a random lottery. The hardest part is definitely the waiting when you're not used to getting money back! But this community has been great for managing expectations and understanding what's normal vs what would be cause for concern.

Oh wow, I'm so glad I found this thread! I'm literally in the exact same situation - filed through TurboTax about 6 days ago and I've been checking that Where's My Refund tool probably 15 times a day. This is also my first refund in several years and I had no idea what was normal timing-wise. All the advice about checking your tax transcript is incredible - I just looked mine up after reading these comments and there's SO much more information there! I can actually see processing codes and dates that give me a way better picture of what's happening. The basic "return received" status was making me think nothing was happening at all. I claimed the Child Tax Credit and some education expenses this year, so sounds like I should probably expect closer to the full 21 days based on what everyone's sharing. At least now I know that's totally normal and not a sign that something went wrong with my return. Thanks everyone for sharing your experiences and timelines - it's so reassuring to know I'm not the only one going crazy with the constant checking! This community is awesome for getting real answers instead of just the generic IRS messaging.

Honestly, if you've been doing your own taxes since 2012, adding a 1099-SA and 1099-K isn't that big a jump in complexity. I'd try the DIY route first with a slightly better tax software than the free version. HR Block in person is crazy expensive for what you're describing - my sister paid $230 last year for something similar!

For your situation, I'd recommend starting with mid-tier tax software before jumping to in-person prep. TurboTax Deluxe or H&R Block Premium online will easily handle your 1099-SA and potential 1099-K for around $50-80, which is way less than the $150+ you'd pay in person. The 1099-SA is pretty straightforward - if you used your HSA money for qualified medical expenses, it's not taxable income. The 1099-K can look scary but it's just reporting payment processor transactions, not necessarily taxable income. You only owe taxes on actual profit from sales. Since you've been successfully filing your own taxes for over a decade, these additions aren't dramatically more complex. The software will walk you through both forms with interview-style questions. Save the money and try the DIY approach first - you can always go to a professional next year if you find it too complicated.