I'm so sorry for the loss of your father, Amina. Dealing with inherited financial accounts while you're still grieving is one of the hardest things to navigate, and you're showing incredible strength by trying to get this right. The community has given you really solid advice about the tax implications. Just to reinforce the key points: you will owe regular income tax on the full HSA amount, but the silver lining is that you won't face that scary 20% penalty since this was a death distribution. I wanted to share something that might help with the practical side - when I had to deal with my grandmother's estate a few years ago, I found it really helpful to create a simple timeline of events. Write down: date of your father's passing, date you were notified about being the HSA beneficiary, date you received the check, and date you deposited it. Having this timeline clear in your head (and on paper) will make everything else fall into place regarding which tax year to file for. The deposit date is what really matters here. If you can't remember exactly when you deposited it, your bank can provide statements or even a transaction history that will show the exact date. One more thing - don't feel pressured to rush through this just because tax season is here. It's better to take the time to get it right, even if that means filing an extension or amended return later. Your mental health and well-being are more important than any deadline. You're handling this with such grace during an incredibly difficult time. Your father raised someone who clearly cares about doing the right thing, even when it's complicated and overwhelming.

I'm so deeply sorry for the loss of your father, Amina. Losing a parent is devastating, and then having to navigate complex tax situations while you're still grieving must feel incredibly overwhelming. Everyone here has given you excellent guidance about the tax treatment of your inherited HSA. The key points are absolutely correct - you'll owe regular income tax on the full amount, but thankfully the 20% penalty that normally applies to HSA withdrawals does NOT apply to death distributions. The most critical thing right now is figuring out exactly when you received and deposited that check from the HSA administrator. If you deposited it in 2021, you'll need to report it on your 2021 tax return (which may require filing an amended return if you've already filed for that year). If you deposited it in 2022, then you'd include it on your current 2022 return. Check your bank statements from late 2021 and early 2022 - the deposit date will be clearly marked and that determines which tax year this needs to be reported on. When you're using FreeTaxUSA, make sure to look for the specific option that indicates this was an inherited HSA or death distribution when entering your 1099-SA. This is crucial because it prevents the software from incorrectly applying that 20% penalty. If all of this feels too overwhelming right now - and that would be completely understandable given what you're going through - please don't hesitate to consult with a tax professional who has experience with inherited accounts. Sometimes having expert guidance during such a difficult personal time is absolutely worth the investment. You're clearly handling this situation with such care and responsibility during an incredibly challenging time. Your father would be proud of how thoughtfully you're approaching this. Take it one step at a time, and remember it's okay to ask for help when you need it.

Just wondering if anyone knows if the threshold for receiving a W-2G form for sports betting? I won a $2,100 parlay but never got any tax form from the betting site.

This is such a timely question! I went through the exact same confusion last year as a new bettor. The gross vs net reporting requirement is definitely counterintuitive, but unfortunately that's how the IRS treats gambling income. One thing that really helped me was setting up a simple tracking system from day one this year. I created a basic spreadsheet where I log each bet - date, platform, amount wagered, outcome, and running totals of wins/losses. It takes maybe 30 seconds per bet but saves hours during tax season. Also worth noting - if you're betting regularly, you might want to consider whether itemizing deductions makes sense for you next year. Even if the standard deduction is higher this year, your situation might change. I ended up itemizing for the first time because between my gambling losses, charitable donations, and some medical expenses, it actually saved me money. The key is just staying organized and keeping good records. The platforms are getting better at providing tax documents, but having your own backup records gives you peace of mind. Good luck with your taxes!

Has anyone dealt with the reporting requirements for the PERSON WHO PAID the settlement? I'm on the other side of this - I had to pay a settlement last year and am confused about how to report the attorney fees portion on the 1099-MISC I'm issuing.

Just want to add some clarity based on my experience as a tax preparer - the key thing everyone's touching on is correct: if your settlement was SOLELY for physical injuries from your workplace accident, it's likely not taxable under IRC Section 104(a)(2). However, be careful about one thing: if any portion of that $42,500 was for lost wages or punitive damages (rather than just compensating for the physical injury and medical expenses), that portion WOULD be taxable. Check your settlement agreement carefully - sometimes these get lumped together. If it's truly all for physical injuries, you don't report it as income, and the 1099-MISC in Box 3 becomes irrelevant for your tax return. But keep all your settlement documentation because the IRS will have a record of that 1099-MISC being issued to you. Also, even if you determine it's non-taxable, some tax software will still prompt you to enter the 1099-MISC and then allow you to mark it as "not taxable due to physical injury settlement" or similar - this creates a paper trail showing you received and considered the form.

Just to clarify something I learned the hard way... the health insurance coverage question (shared responsibility payment) was effectively eliminated after 2018 due to the Tax Cuts and Jobs Act setting the penalty to $0. So technically you don't have to worry about reporting health insurance coverage on federal taxes anymore, unless you live in a state that has its own individual mandate (like MA, NJ, RI, CA or DC).

Great question! As others have confirmed, since you're a dependent covered under your mom's marketplace plan, you don't need to include the 1095-A on your tax return. Your mom, as the policyholder, is responsible for reporting it on her taxes. Just a couple of things to keep in mind as you file: 1. Make sure you check the box indicating that someone else can claim you as a dependent 2. You'll still report that you had health insurance coverage for the months you were covered (even though there's no federal penalty anymore, it's good practice) 3. Keep a copy of that 1095-A for your records - you never know when you might need it later Since this is only your second time filing, don't stress too much! You're asking the right questions. The main thing is accurately reporting your income from your campus job and correctly indicating your dependent status. The 1095-A situation is entirely your mom's responsibility to handle.

Has anyone dealt with handling PMI deduction in this situation? My boyfriend and I bought last year too and we have mortgage insurance since we put less than 20% down.

This is such a helpful thread! I'm in a similar situation - my partner and I bought a house last year but aren't married yet. One thing I wanted to add is about property tax payments. Even if your mortgage company handles the property tax payments through escrow, you can still deduct those taxes on your return. Make sure to check your annual escrow statement from your lender - it should show exactly how much was paid in property taxes for the year. This amount can be deducted separately from the mortgage interest, and the same rules apply about splitting it between you and your fiancé if you're both contributing to the mortgage payments. Also, don't forget about any points you paid when you got the mortgage - those are typically deductible in the year you bought the house if it was your primary residence. The points would be shown on your HUD-1 settlement statement or Closing Disclosure from when you purchased. Good luck with your taxes and congratulations on the house! The first year of homeownership taxes can be confusing but you'll get the hang of it.