Has anybody else had issues with the irs e-file system this year? My return keeps getting rejected but doesn't explain why.

This is a really common situation that catches a lot of people off guard! The main culprit is definitely the Earned Income Tax Credit (EITC) like others mentioned. At $27k with 4 dependents, you were probably getting the maximum EITC of around $6,000-7,000, but at $54k you're likely getting little to none of it. Here's what probably happened: Last year your total tax liability was probably very low (maybe $2,000-3,000) but you got huge refundable credits that gave you that $14,750 refund. This year, even though you're paying more in actual taxes, those big credits are mostly gone. The silver lining is that you're definitely better off financially overall - you're keeping way more money throughout the year in your paychecks. That $14k refund was essentially the government giving you your own money back that they over-collected, plus credits for being lower income. For next year, I'd suggest using the IRS withholding calculator and maybe having a bit extra withheld if you want a bigger refund. Also look into maximizing any retirement contributions (401k, IRA) since those can lower your taxable income and potentially help you qualify for more credits.

Don't forget you need to keep track of these payments yourself!! I learned this the hard way. TurboTax doesn't automatically know about that check you wrote to your state last year. You have to manually enter it when you get to the itemized deductions section. Same goes for any estimated state tax payments you made. Keep records of EVERYTHING because it's super easy to forget by the time next tax season rolls around.

This is such a common confusion! I went through the exact same thing last year. The key thing to remember is that you deduct state taxes in the year you actually PAID them, not the tax year they were for. So your $650 payment from last year gets deducted on THIS year's federal return if you itemize. But here's what tripped me up initially - make sure you're not double-counting anything. If you had state taxes withheld from your paychecks last year AND paid additional taxes when you filed, you can deduct both amounts, but they go on different years' returns. Also, don't forget about the $10,000 SALT cap that others mentioned. If you live in a high-tax state and own property, you might hit that limit pretty quickly between state income taxes and property taxes. I ended up barely under the cap, so every dollar of state tax deduction actually helped me. Definitely worth running the numbers both ways (itemized vs standard deduction) to see which gives you the better result!

I went through this exact same situation with HSA Bank last year and it's incredibly frustrating that they don't help with the calculation. Here's what I learned: Since your excess contribution happened on December 30th, you're actually in a pretty good position - there's only been 2 days for any gains/losses to accumulate. The fact that the calculator is showing less than your $82.49 excess means your HSA investments had a small loss during those two days. You should definitely withdraw the calculated amount (not just the $82.49). The IRS requires you to remove the excess contribution adjusted for any proportional gains or losses. In your case, the loss actually works in your favor since you'll withdraw slightly less than what you contributed. Make sure to: 1. Request that HSA Bank code this as an "excess contribution removal" on your 1099-SA 2. Complete the withdrawal before you file your 2024 taxes 3. Be prepared for HSA Bank's $25 processing fee Since you haven't filed your 2024 taxes yet, you're well within the deadline and won't need to worry about the 6% excise tax or Form 5329 as long as you handle this promptly.

I just went through this exact same mess with HSA Bank a few months ago - they're absolutely terrible at helping customers with these calculations! The good news is that since your excess happened so late in the year (December 30th), you're dealing with minimal earnings/losses. Here's what you need to know: If the calculator is showing a withdrawal amount less than your $82.49 excess, that means your HSA investments had a small loss during those final two days of the year. This actually works in your favor - you only need to withdraw the calculated amount, not the full excess. The IRS formula is: (Excess Contribution) × (Net Income ÷ Fair Market Value). Since your account value dropped slightly, the "Net Income" part is negative, reducing your required withdrawal. Make sure to: - Request HSA Bank code this as "excess contribution removal" - Get it done before filing your 2024 taxes - Budget for their annoying $25 processing fee Since you're handling this in January and haven't filed yet, you're well within the deadline and won't face the 6% excise tax. The withdrawal will show on a 2025 1099-SA but corrects your 2024 contribution limit issue.

I just went through this exact process a few months ago when I transitioned my indie game studio to a corporation! The W-8BEN-E definitely feels overwhelming at first, but it's much more straightforward once you understand the key points. For Canadian corporations selling on the App Store, here's what I learned: **Income Classification**: Your App Store revenue is classified as royalties, not business profits. This is because you're licensing your software to Apple for distribution, making it royalty income under Article 12 of the Canada-US tax treaty. **Key Form Sections**: - Part I: Standard corporation info (make sure your legal name matches exactly with your incorporation docs) - Part III: Claim treaty benefits under Article 12, enter 0% withholding rate - Part XXV: Most app dev corps qualify as "Active NFFE" since you're actively running a business **Critical Details**: - Include your Canadian Business Number in the foreign tax ID field - In the Limitation on Benefits section, mention that you meet the ownership test (since all shareholders are Canadian) - Don't forget to actually sign and date the form! The treaty benefit is huge - it reduces your US withholding from 30% down to 0% for royalties. Having all Canadian shareholders actually helps because it makes the Limitation on Benefits provisions easier to satisfy. Apple typically reviews these within 5-7 business days. If they reject it, they'll usually tell you exactly what needs to be fixed. Just make sure every detail matches your corporate documents perfectly. Hope this helps! The corporate structure is definitely worth it for the tax benefits and liability protection.

This is such a helpful thread! I'm in the exact same boat - Canadian corporation with all Canadian shareholders, transitioning from individual Apple Developer account. One thing I wanted to add that might help others: when filling out the "Limitation on Benefits" section in Part III, I found it helpful to be very specific about which test you're claiming to meet. For most small Canadian app development corporations like ours, the "ownership and base erosion test" is the most straightforward path. The ownership test requires that more than 50% of your corporation is owned by Canadian residents (which sounds like your situation), and the base erosion test means less than 50% of your gross income is paid to non-residents. For most indie app developers, this second part is usually easy to meet since your main expenses are typically local (salaries, office rent, equipment, etc.). Also, make sure you're using the most current version of the W-8BEN-E form. I made the mistake of downloading an older version from a random website and had to resubmit when Apple pointed out it was outdated. The transition definitely seems overwhelming at first, but the 0% withholding rate under the treaty makes it absolutely worth the paperwork hassle!

H&R block charged me $450 last year for basically typing numbers from my forms into their computer. This year I did it myself with TurboTax and paid $120. Self employed too with some investment stuff. The software asks the same questions the human did tbh.

Wow, $675 is absolutely outrageous for a straightforward self-employment return! I had a similar experience with H&R Block a few years ago - they quoted me $550 for what was essentially just a Schedule C and basic forms. I ended up walking away and never went back. The reality is that most self-employed people with simple situations can easily handle their own taxes with good software. The "complexity" they charge you for is really just filling out Schedule C, which asks pretty straightforward questions about your income and business expenses. Unless you have multiple businesses, complex depreciation schedules, or unusual deductions, you're paying hundreds of dollars for data entry. I've been doing my own self-employment taxes for the past 3 years using various software options and have saved thousands compared to what these chain preparers were charging. The software walks you through everything step-by-step and often catches deductions that the rushed preparers at these big chains miss anyway.