This is super helpful too. So if I'm understanding right, the GILTI tax treatment is actually more favorable if you're operating through a US corporation rather than having individuals directly owning foreign corporations? Would you need to create a new US parent company to get these benefits if you already have direct ownership of foreign entities?

That's correct. Individuals owning CFCs directly can face a much higher effective tax rate on GILTI because they don't automatically get the Section 250 deduction that corporations receive. You can potentially restructure existing arrangements by contributing your foreign corporation shares to a new or existing US corporation. However, this needs to be done carefully to avoid triggering other tax consequences. The transfer would typically need to qualify under Section 351 as a tax-free contribution to a corporation. You'd also want to consider ongoing implications like potential double taxation on dividends when the US corporation eventually distributes profits to you as an individual.

For US corporations, the effective tax rate on GILTI is typically around 10.5% to 13.125% (after the Section 250 deduction), which is about half the regular corporate tax rate. This increases to 16.4% after 2025 when the GILTI deduction percentage changes. But remember, you can still claim foreign tax credits for up to 80% of the foreign taxes paid on that income. So if your foreign subsidiaries are already paying tax at rates close to these percentages, your additional US tax might be minimal.

I checked our agreement again last night and you're right! There's actually a clause buried in section 7.3 that requires distribution of all tax documents at least 30 days before tax filing deadlines. I completely missed this before. I'm drafting a formal letter right now citing this specific provision. This might be the leverage I needed - thank you!

This is good advice. I use this form all the time with clients. Just note that it might take a few weeks to get the information back from the IRS, so it's not an immediate solution for this filing season. But it could help you determine if the partnership is filing on time and just not giving you your copy, or if they're actually filing late with the IRS too.

What if I did a direct rollover from my 401k to Roth IRA without going through a traditional IRA first? My 1099-R has code G in box 7 but still has the full amount as taxable. Do I still need Form 8606 in this case?

If you did a direct rollover from a 401k to a Roth IRA, the process is a bit different. Code G indicates a direct rollover, but whether it's taxable depends on whether the 401k portion was pre-tax or after-tax money. If it was after-tax contributions from your 401k going directly to a Roth IRA, then yes, you would still want to override the taxable amount. However, Form 8606 is primarily for tracking basis in IRAs, not 401ks. You'll need to document your after-tax contributions to the 401k separately, usually by providing records from your plan administrator showing which portion was after-tax.

I e-filed with this exact scenario last year and had no issues. As long as you complete Form 8606 correctly, the e-file should go through fine. The IRS systems are built to handle this situation because it's actually pretty common with Roth conversions.

I didn't have any other income, just this part-time job. What's the Earned Income Credit? Could I really get money back even though I barely paid anything in? That sounds too good to be true.

The Earned Income Tax Credit (EITC) is designed specifically for lower to moderate income workers. For tax year 2024 (filing in 2025), if you're single with no children and earned around $11k, you might qualify for a small credit - potentially a few hundred dollars. It's a refundable credit, which means you can get it even if you owe no taxes. There are age requirements though - you generally need to be at least 25 and under 65 to claim it without qualifying children. You'll need to file Form 1040 and complete Schedule EIC to claim it. Most tax software will automatically check if you qualify when you enter your information, so it's worth filing even if you don't owe any taxes!

Same thing happened to me in college. If you check "Exempt" you need to fill out a new W-4 every year or they automatically start withholding at the highest rate after February 15. Learned that the hard way lol.

Does the homestead exemption work if you have a rental property? I have my primary residence plus a small rental house that got a crazy assessment increase.

Homestead exemptions only apply to your primary residence, not rental properties. They're specifically designed to provide tax relief to owner-occupied homes. For your rental property, you'll need to pursue the standard appeal process focusing on comparable sales data. One strategy that might help specifically for rental properties is providing documentation of your actual rental income if it doesn't support the high valuation they've assigned.

Great advice! Did you submit printed photos or digital? And did you organize them in any particular way?