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The HSA contributions are not counted as medical expenses.  Medical expenses can be deducted from your taxable income.  Health insurance premiums paid with after tax dollars can be claimed as expenses.  HSA contributions are paid with pre-tax dollars if done via payroll. You get a tax deduction (as HSA contributions) when the contributions are made outside payroll and reported on your tax return.  Because of this, the contributions are not deductible medical expenses. Additionally, expenses paid with an HSA distribution are also not education expenses. These are all paid with pre-tax dollars, so there is no deduction from taxable income.    New Jersey does not recognize HSA contributions as deductions and TurboTax will add the amount of the contributions shown on your W-2 to the state income shown in Box 16 when transferring your income to your New Jersey return.   

You can delete Schedule C from your tax return.  If you are using TurboTax Online, please follow the instructions in this TurboTax Help article to delete a form.  If you are using TurboTax Desktop, please follow the instructions in this TurboTax Help article to delete a form.  If you filed with TurboTax before, the program will keep some information. If this is the case, just look at your entries to make changes.   Keep in mind that if you filed with TurboTax in the past, the program will carry forward some information.  If this is your case, review your entries to make necessary changes.   After you delete the Schedule C, you can re-enter your information again.     How do I report income from self-employment? What self-employed expenses can I deduct?    

Once you are sure you don't need this form, you can delete it.    If you are using: TurboTax Online: see How do I view and delete forms in TurboTax Online? TurboTax Desktop: On the top right, there is a FORMS button. Click on FORMS. Locate the form you want to delete. Click on the form name. Below the form, bottom left, select DELETE FORM button.

If you are purchasing these items to gain more customers you would list them as advertising or promotions.  This applies whether you keep the items for the next event or give them away during an event.    If you are buying items that are meant directly for use with the client then that would be supplies.   Overall, it will not have an affect on your return which category you use if you label a few dollars to the one side versus the other because it can be used for both.  Both of these expenses are deducted $1 for $1 and lump summed into the total expense deduction.

To eliminate the 6% excess-contribution penalty for 2024, your 2024 tax return needs to include $3,850 of the distribution as being taxable and subject to the 20% additional tax.  If you paid medical expenses in 2024 to which you can apply the other $248, that will eliminate the tax and 20% penalty on the $248.  To eliminate all of the excess, you can claim no more than $248 as being applied to medical expenses.  A consequence of failing to correct the excess timely is double taxation of the excess.   If the HSA custodian will not correct the coding of the distribution, yes, you'll need to enter code 1 in box 3 and nothing in box 2, then provide explanation with your printed and mailed tax return.

Understood on the 20% penalty for the entire distribution, but I will only include the $248 earnings in Other Income for 2024, correct? I already included the excess $3,850 in Other Income for 2023. I hope TurboTax won't get confused and try to double tax me on the original $3,850 excess.

Yes, you can go back to entering the state taxes   Log into TurboTax On the left sidebar Select State Taxes Be sure the side arrow is up Choose Prepare State [Lets get started] Any states you have on your return will be listed You can also choose to [+Add a State]

You will not be able to find it by using the search function.  As I was taking a look in the program to see if the instructions shared previously had changed, I noticed that for some reason, the option to enter information for Metro Commuter Transportation District Self-Employment Income does not show up as an option if you are using TurboTax Online.  It can be found if you are using one of the desktop versions of TurboTax.   This situation is being reported to the development team for correction, but it will not be corrected in time to meet the filing deadline.     You may want to consider using a desktop version of TurboTax to file your returns if you are currently using TurboTax Online and you need to include the MCTMT as part of your return.   Take a look at the following TurboTax help article to learn how to change to a desktop version:   How do I switch from TurboTax Online to TurboTax Desktop?   @Grandm826 

It depends. If you believe Schedule K-3 will report sufficient income to affect your taxable income for the year, you may choose to request an extension of time to file. But if you believe the information from Schedule 3 won't apply to you or won't significantly change your taxable income, you may choose to file your return now and amend your return if necessary when the forms arrive.   In most cases, the foreign income reported on Schedule K-3 is either already reported on Schedule K-1 or only applies to partners with other foreign income and/or assets.   If you chose to file now, uncheck Box 14/16 from Schedule K-1 to clear any federal review issues in TurboTax.   The instructions in TurboTax for a Form 1065 Schedule K-1 box 13 code K: "This income, deduction, credit, or other item occurs infrequently and is not supported by the program. You must enter this income, deduction, credit, or other item directly on the applicable form or schedule based on the information that was supplied with the Schedule K-1."   Per the IRS Instructions for Form 1065 Schedule K-2, Box 20 Code V, the information reported here applies to a partner that is a tax-exempt organization. In most cases, this does not apply to an individual taxpayer. You may omit Code V from your K-1 entries for Box 20.   Form 8990 is not supported by TurboTax for Form 1040 tax returns. If you want to track your excess business interest, you will need to manually prepare that form, and include it with the return that you print and mail. Click here for IRS form and instructions for Form 8990. For most individual taxpayers, this form is optional.