I've been in this exact situation and I know how nerve-wracking it can be! 😅 Here's what I've learned from my experience: The IRS transcript system and their mailing system don't always sync up perfectly. Sometimes letters get generated and mailed before the corresponding codes appear on your transcript, and other times it's the reverse. There's usually a 2-5 business day lag either way. A few possibilities for your mystery letters: • Routine correspondence about prior tax years • Identity verification requests (very common lately) • Payment plan confirmations or installment agreement updates • Educational notices about tax law changes • Confirmation that they received your return (even if not processed yet) • CP notices for small balances or corrections The good news is that truly serious issues (like audit notices or large penalties) almost always come certified mail with obvious warning language. Regular business mail format letters are usually much more routine than they appear. Try not to stress too much until you actually see what's inside! In my experience, about 80% of "mystery IRS letters" turn out to be informational or routine administrative stuff. The anticipation is honestly worse than the actual content most of the time! 🤞

I completely understand that anxiety! 😟 I went through this same thing about 2 months ago - Informed Delivery showed 2 IRS letters coming while my transcript showed absolutely nothing new. I was convinced it was going to be bad news, but it turned out one letter was just confirming they had received my tax return (even though it wasn't processed yet) and the other was actually a refund interest payment notice for like $8 from a prior year overpayment. The transcript delay is definitely real - I've noticed the IRS computer systems seem to update at different speeds depending on which department generates the correspondence. Letters from the processing centers sometimes arrive before transcript updates, while notices from examination or collections usually show up online first. One thing that helped me cope with the waiting was remembering that Informed Delivery only shows you there's mail coming, not what's actually inside. Those envelopes could literally be anything - routine forms, informational notices, or even something positive like a refund check! Try to stay calm until you can actually read what they contain. The anticipation is honestly the worst part! 🤞

Am I the only one who withdraws from my HSA without actually submitting receipts? I've been saving all my medical receipts for years (have about $3,400 worth) but haven't taken any distributions yet because I'm treating my HSA like another retirement account. I've heard you can reimburse yourself years later as long as the HSA was established before you incurred the medical expense. Is that right?

This is such a helpful thread! I'm dealing with the same situation - got my 1099-SA with code 1 and was worried I did something wrong. Reading through everyone's experiences, it sounds like I'm on the right track. One thing I want to add for anyone else reading this: make sure you double-check that ALL your HSA distributions were actually for qualified medical expenses. I almost made a mistake because I used my HSA debit card at CVS and assumed everything was qualified, but it turns out I bought some regular vitamins and sunscreen that don't count as qualified medical expenses under IRS rules. Also, @Isla Fischer, that strategy of saving receipts and reimbursing yourself later is brilliant! I never thought about using my HSA as a retirement account like that. Definitely something to consider for future medical expenses. Thanks everyone for sharing your experiences - this community is so much more helpful than trying to navigate the IRS website alone!

Hey Steven! I totally get the confusion - taxes are intimidating when you're just starting out. Here's what I wish someone had told me when I started doing freelance work as a teen: The good news is that at 15 with casual art commissions, you're probably not going to owe a ton in taxes even if you do need to file. The main thing to watch is that $400 threshold for self-employment tax that others mentioned - once you hit that in profit (not total earnings, but profit after expenses), you'll need to file. Start keeping track now even if you're not making much yet. I use a simple notes app on my phone to jot down each commission payment and any art supplies I buy. Takes like 30 seconds per transaction but saves hours later. Also, don't stress about understanding everything perfectly right away. Even adults find taxes confusing! The most important thing is being honest about your income and keeping good records. You've got time to learn the details as your art business grows. One last tip - if you do start making decent money from commissions, consider setting aside like 20-25% of each payment in a separate savings account for taxes. Better to have extra money sitting there than scramble to pay taxes later!

Hey Steven! I was in your exact situation two years ago when I started selling my digital art at 16. The tax stuff seemed super scary at first, but it's really not as complicated as it sounds once you break it down. Here's the simple version: You'll need to file taxes if you make more than $400 profit from your art commissions (that's income minus expenses like art supplies, software subscriptions, etc.). Being under 18 doesn't exempt you from this - I learned that the hard way! The key thing is to start tracking everything NOW, even before you hit that $400 threshold. I use a simple Google Sheets document with columns for date, client, amount received, and any expenses. Every time I get paid or buy art supplies, I add a line. Takes maybe 2 minutes but saves so much stress later. Also, talk to your parents about this! They need to know you're earning money since it might affect how they file their taxes (though you'd still file your own return). My parents were actually really helpful once I explained what I was doing - they helped me set up a separate bank account just for my art business. Don't let the tax stuff scare you away from pursuing your art! It's honestly pretty manageable once you get into the habit of tracking things. Plus there's something really satisfying about running your own little business at 15. You've got this!

I just went through this exact situation with my YouTube channel! The good news is that you have flexibility here - you can use either your SSN as your TIN or get an EIN, both are completely valid options. Since you're making decent money ($4800 last year, expecting $12k+ this year), I'd actually recommend getting an EIN for a couple reasons: 1) It keeps your SSN more private when dealing with platforms and brands, and 2) It makes you look more professional when negotiating with sponsors. The EIN application is free and takes about 10 minutes on the IRS website. You'll select "Sole Proprietor" as your business type. Once you have it, you can use that number whenever platforms ask for tax info. Also, since you're crossing the $600+ threshold where Instagram will definitely send you a 1099, make sure you're tracking all your business expenses - phone, internet, camera equipment, editing software, props, even a portion of your home if you film there. These deductions can really add up and save you money at tax time! One last tip: with $12k+ income expected, you should probably start making quarterly estimated tax payments to avoid underpayment penalties. Set aside about 25-30% of your creator income for taxes.

I'm a tax professional who works with a lot of content creators, and I want to clarify a few things that might help ease your concerns. First, you're absolutely right to be thinking about this now - Instagram is required to collect this information for anyone they expect to pay $600 or more in a calendar year, which sounds like it applies to your situation. You have two completely legitimate options: 1. Use your SSN as your TIN - this is what most individual creators do when starting out 2. Get an EIN (Employer Identification Number) from the IRS - this is free and can be done online in about 10 minutes From a privacy standpoint, many creators prefer getting an EIN because it means you're not sharing your SSN with multiple platforms and brands. It also doesn't change how you file taxes - you'd still report everything on your personal return using Schedule C. One important note: with your projected $12k+ income this year, you'll likely need to make quarterly estimated tax payments to avoid underpayment penalties. Generally, if you expect to owe $1,000+ when you file, the IRS wants you to pay throughout the year rather than all at once. I usually recommend creators set aside 25-30% of their earnings for taxes. Also start tracking ALL business expenses now - equipment, software subscriptions, props, phone/internet bills, home office space if you have a dedicated area for content creation. These deductions can significantly reduce your tax liability.

Just wanted to add my experience since I had the exact same confusion last year! Your employer is 100% correct - Box 12W only shows YOUR payroll deductions ($475), not the employer contributions ($900). I made the mistake of questioning my HR department about this too, and they patiently explained that employer HSA contributions don't appear anywhere on your W-2. They're not taxable income to you, so there's no need to report them there. The key thing to remember when doing your taxes is that you'll need both numbers: your $475 from Box 12W AND your employer's $900 (which you can get from your HSA year-end statement or calculate as the difference). Most tax software will ask for both amounts in separate fields when you get to the HSA section. Don't worry - this is one of the most commonly misunderstood parts of HSA reporting. You're definitely not alone in being confused by it!

I had this exact same issue with my HSA reporting last year! Your employer is absolutely correct - Box 12W should only show your $475 in payroll deductions, not the employer's $900 contribution. I was initially confused too because logically you'd think ALL HSA contributions would appear in one place on your W-2, but that's not how it works. Employer HSA contributions are excluded from your taxable income entirely, so they don't need to be reported on your W-2 at all. When you file your taxes, you'll use Form 8889 to report both amounts separately. Your tax software should have two different fields - one for employee contributions (from your W-2 Box 12W) and another for employer contributions (which you can get from your HSA provider's year-end statement or calculate as $1,375 total - $475 employee = $900 employer). The good news is that you'll get the full tax benefit for your $475 contribution (it reduces your taxable income), and the employer's $900 was already tax-free when they contributed it. Don't stress about this - it's one of the most commonly misunderstood aspects of HSA tax reporting!