Just wanna add that if you're not making a profit for several years, the IRS might classify your farm as a hobby rather than a business. Generally, they expect you to show a profit in 3 out of 5 consecutive years (though the rule is 2 out of 7 years for horse operations). If you get classified as a hobby, you lose all those business deductions. So document EVERYTHING that shows you're trying to make a profit - your business plan, marketing efforts, education/training, improvements aimed at efficiency, etc.

Something that hasn't been mentioned yet is the importance of keeping a detailed activity log from day one. I learned this the hard way when the IRS audited my small farm operation three years in. They wanted to see proof that I was spending substantial time on legitimate business activities, not just weekend hobby farming. I'd recommend tracking your hours weekly - time spent researching markets, maintaining equipment, caring for animals, preparing land, etc. Also document any educational activities like attending farming workshops, reading agricultural publications, or consulting with extension agents. This creates a paper trail showing business intent even before you have revenue. One more tip: consider getting your farm business properly registered and obtaining any necessary licenses or permits for your area, even if you're not selling yet. Having official recognition as an agricultural operation strengthens your position if questions arise about business legitimacy.

Just wanted to mention that IRS letters come in different "flavors" - some are just informational, some require a response, and some are billing notices. The most important thing is to figure out which type you have: - Notice number starting with CP: Usually automated notices about specific account issues - Letter number starting with LTR: More personalized correspondence often requiring action - Notice numbers 501-504: Collection notices (more serious) Don't panic, but definitely don't ignore it! The IRS actually becomes much more reasonable when you communicate with them promptly.

If anyone's curious what different IRS letters mean, here's what I've received over the years: CP2000 - Proposed adjustments to tax (they found income you didn't report) CP14 - Balance due notice (you owe money) CP12 - Refund adjustment notice (they changed your refund amount) CP05 - EIC examination notice (they're reviewing your earned income credit) Each one tells you exactly what they need from you. Just follow the instructions and you'll be fine!

This is actually more common than people realize! I work in tax preparation and see this happen every year during peak filing season. The IRS payment processing system and their status tracking systems run on different databases that don't always sync in real-time. Think of it like ordering food - sometimes your order gets delivered before the tracking app updates to "out for delivery." The good news is that if you received your refund, it's legitimate and processed correctly. The transcript and WMR tools are just playing catch-up. Usually within 1-2 weeks everything syncs up, but honestly, once you have your money, those status updates become pretty irrelevant!

This thread has been so helpful! I'm dealing with the exact same situation right now - filed on February 14th, WMR still shows processing, transcript is N/A, but after reading all these responses I checked my bank account and sure enough, my refund deposited yesterday! I had been checking TPG and the IRS tools obsessively but completely forgot to look at my actual bank balance. It's wild how their systems can be so disconnected, but I'm just grateful the money came through. Thanks everyone for sharing your experiences - definitely saved me from more sleepless nights worrying about this!

Is anyone else annoyed that there's no clear instructions about this on Form 8889?? Like nowhere does it explicitly say "if your contributions were made through payroll, you don't get a deduction on line 13 because you already got the benefit." I've been doing this wrong for 3 YEARS!

I completely understand your confusion - this is one of the most common HSA tax issues! Let me break this down clearly: **Issue #1:** You're absolutely RIGHT that your taxable income should be $60,400 if you contributed $4,600 through payroll. The key is that you've ALREADY received this benefit! When HSA contributions are made through payroll deduction, they're excluded from your gross wages before your W-2 is even created. So your W-2 Box 1 should show $60,400, not $65,000. The zero on line 13 is correct because you don't need an additional deduction - you already got the tax benefit upfront. **Issue #2:** Lines 3 and 5 should show YOUR individual contribution limit of $4,600, not the combined $9,200. Each spouse fills out their own Form 8889 with their own limits. You're correct that line 6 should be $4,600. **The TaxSlayer mystery:** That $14,398 is definitely wrong! Sounds like the software may have incorrectly included health insurance premiums or other amounts that don't belong on Form 8889. The 2021 limit for individual coverage was only $3,600, so there's no way it should be that high unless there were catch-up contributions or rollovers involved. Double-check your W-2 Box 1 - I bet you'll find it's already reduced by your HSA contributions!

Fyi this happened to me with a relocation package too. Here's what I learned: the "special accounting rule" is something employers can elect to use, BUT they have to consistently apply it to all employees. Also, the benefit has to be "provided" in Nov/Dec - the date they paid the invoice doesn't matter, it's when you received the service.

Your instincts are absolutely correct - they can't apply the special accounting rule to benefits provided in August/September. The rule specifically states benefits must be "provided" in the last two months of the year, not just paid for then. I'd recommend documenting everything: your original move date, when your belongings arrived, any communications about the relocation timeline. Then send a formal written request to HR citing IRS Pub 15-B and requesting they issue a corrected 2023 W-2. If they refuse, you have options. You can file Form 4852 with your 2023 return to report the correct amount, or contact the IRS directly for guidance. Don't let them push this to 2024 just because it's easier for their accounting - you'll end up paying tax on income you should have reported last year, potentially affecting your tax brackets and other calculations.