I went through this exact same process last year with my SPX options and futures trading! The confusion is totally understandable - TurboTax's interface for 1256 contracts isn't very intuitive. Here's what worked for me: After searching for "Form 6781" and selecting "Yes" for having 1256 contracts, the key is to use the summary amounts from your 1099-B rather than trying to enter individual trades. Your broker should have a specific section for 1256 contracts that shows your total gains/losses. One thing that tripped me up initially was making sure I didn't double-enter these amounts in both the regular capital gains section AND Form 6781. The 1256 contracts should ONLY go in Form 6781, not in the regular stock trading sections. With $14,500 in realized profits, you'll benefit from that 60/40 split (60% long-term, 40% short-term) regardless of how long you held the positions. TurboTax will calculate this automatically once you enter your totals correctly. The "marked to market" question should be "No" unless you've made a special trader election with the IRS, which most retail traders haven't done.

I just went through this exact situation a few months ago when filing my taxes for last year's SPX options trading. The Form 6781 process in TurboTax definitely isn't as straightforward as it should be! One thing that really helped me was double-checking my broker's classification of the trades. I found that my broker had actually missed categorizing a few of my SPX trades as 1256 contracts on the initial 1099-B, but they issued a corrected version later. You might want to verify that all your SPX options and futures are properly marked as Section 1256 contracts on your forms. Also, keep in mind that if you have any wash sale adjustments related to your 1256 contracts, those will need special handling since the wash sale rules work differently for Section 1256 contracts compared to regular securities. The good news is that once you get past the initial confusion, the 60/40 tax treatment actually works out pretty favorably compared to short-term capital gains rates on regular trades. With your $14,500 profit, you'll definitely benefit from having 60% of that treated as long-term gains. If you run into any snags with the TurboTax interface, don't hesitate to reach out - this community has been really helpful for navigating these more complex trading tax situations!

I'm in a very similar situation - got laid off in February and received a severance package with what felt like excessive tax withholding. Reading through everyone's experiences here has been incredibly reassuring! One thing I wanted to add that might be helpful is to make sure you understand exactly what was included in your severance calculation. My package included not just the base severance but also prorated bonus, unused sick time, and even a small amount for my company phone reimbursement. Each component might be subject to different withholding rules, though they all end up as regular income on your W-2. I've been using a simple tracking sheet to monitor my total income and withholdings for the year, similar to what Carmen mentioned. With 8 weeks of unemployment, your annual income will definitely be lower than normal, which should work in your favor when everything gets reconciled. The consensus here from people who've actually been through this is spot on - that 22% supplemental withholding rate is typically higher than your actual tax liability, especially with reduced annual income from unemployment. Based on all these experiences, you're probably looking at a nice refund rather than owing more. Hang in there!

I went through almost the exact same situation last year - laid off in January with a lump sum severance that had what seemed like crazy high withholding. I was terrified I'd end up owing a ton at tax time, but it actually worked out great. My company withheld about 24% from the severance (using that supplemental wage rate everyone's mentioned), but when I filed my taxes, I got back almost $3,200 more than I expected. The key was exactly what others have said - my total annual income was much lower due to being unemployed for 10 weeks, so my effective tax rate ended up being way below what they withheld. One thing that really helped was keeping track of every job search expense. I spent money on resume writing, interview clothes, networking events, even gas for interviews. My tax preparer was able to use some of these to reduce my tax liability even further. The takeaway from my experience matches what everyone else is saying - that overwithholding on severance combined with lower annual income from unemployment typically results in a nice refund. You'll probably be pleasantly surprised come tax time!

One thing nobody's mentioned - make sure you're calculating your income correctly for healthcare.gov purposes. It's based on Modified Adjusted Gross Income (MAGI), which is different from your gross business income. For self-employed people, you subtract your business expenses from your gross receipts first. So that $18,000 project might actually add a lot less to your MAGI once you factor in the expenses associated with earning that income.

Don't panic - this is actually a pretty common situation for self-employed folks! The key thing to understand is that this isn't considered "tax fraud" or anything like that since it was unintentional. The system is designed to handle these income fluctuations through the reconciliation process on Form 8962. A few immediate steps you should take: 1. **Update your marketplace application NOW** - Even though it's after the fact, updating your current income will help prevent this from happening again and may reduce future repayments. 2. **Gather all your business records** - You'll want to calculate your actual net self-employment income (gross income minus business expenses) for the reconciliation. 3. **Consider estimated tax payments** - Since you had higher income than expected, you might also owe additional income tax beyond just the premium tax credit repayment. The silver lining is that repayment caps exist to prevent people from owing back massive amounts. Even in a worst-case scenario, there are limits based on your income level. And remember, you're not the first person this has happened to - tax professionals and the IRS deal with marketplace reconciliations all the time. Start by updating your marketplace info and then consider consulting with a tax professional who can walk you through exactly what to expect when you file.

Just wanted to add something important - if you determine the 1099-R is fraudulent, don't just address it with the IRS. You need to report the identity theft to: 1) Federal Trade Commission (IdentityTheft.gov) 2) Credit bureaus (place a fraud alert) 3) Your banks and financial institutions (alert them to watch for suspicious activity) 4) Your local police department (get a police report) The 1099-R itself might just be one visible sign of a larger identity theft problem. I ignored a fake 1099-R last year thinking it was just a tax issue, and three months later someone tried to take out a mortgage in my name! These criminals often test the waters with something like a fake tax form before attempting bigger fraud.

Even though police departments often don't actively investigate individual identity theft cases, getting a police report is still really important for several reasons: 1) Many financial institutions and credit agencies require a police report number when you're disputing fraudulent accounts or charges 2) The IRS may ask for a copy of the police report when you file Form 14039 (Identity Theft Affidavit) 3) It creates an official record with a case number that you can reference in future disputes 4) Some insurance policies that cover identity theft require a police report to process claims 5) If the fraud escalates or if law enforcement discovers it's part of a larger scheme, having that initial report on file can be crucial I learned this the hard way - I initially skipped the police report thinking it was unnecessary paperwork, but then had to go back and file one later when my bank required it to reverse fraudulent charges. The detective told me that while they can't investigate every case individually, the reports help them identify patterns and larger criminal operations. It usually only takes 20-30 minutes to file the report online or over the phone in most jurisdictions, so it's worth doing even if it feels like a formality.

For 2021-2023, you're in luck since those are recent years! Here are some quick options that should work well for that timeframe: **Fastest options:** - IRS online transcripts (Get Transcript tool) - should show all your W2 info for those years - Your state's unemployment website - create an account to view your complete wage history. Most states upgraded their systems recently and 2021-2023 data should be instantly available - Check old email accounts for any job-related emails, onboarding documents, or even automated payroll notifications **If you remember some employers but can't reach them:** - Try calling their main number and asking to be transferred to payroll/HR - Many companies now have employee self-service portals where you can log in and download old tax documents **Don't forget about:** - Any gig work (Uber, DoorDash, etc.) - check those apps for 1099s - Bank statements showing employer direct deposits - Old tax software accounts you might have started Since you're only dealing with 3 recent years and you're within the refund window, this should be much more straightforward than longer timeframes. The state unemployment route is probably your fastest free option - I was able to get my complete 2021-2023 employment history in under 10 minutes that way.

One additional option that worked really well for me was checking with any temp agencies or staffing companies you might have worked through during those years. I completely forgot I had worked a few short-term assignments through Robert Half and Adecco in 2022, but when I called them, they still had all my W2s on file and were able to email them to me within a day. Temp agencies are usually pretty good about keeping records since they deal with so many workers, and they often have centralized systems that make it easy to pull up old tax documents. If you remember doing any contract work, seasonal jobs, or filling in at different companies, definitely check with the staffing agency rather than trying to track down each individual client company. Also, don't overlook checking your old W2s if you have any from 2024 - sometimes the same employer information appears on the current year's documents, which can help you remember places you worked in previous years. I found contact info for a 2021 employer this way when I realized they were still issuing my 2024 W2. The good news is that for 2021-2023, you're still well within the statute of limitations for claiming any refunds, so even if this process takes a few more weeks, you won't lose out on money the IRS owes you. Take your time and be thorough - it's worth getting it right!