Would this still apply for 2022 taxes? I was unemployed for most of 2021 but also for part of 2022, so wondering if I can use this for next year's filing too.

Unfortunately, the lookback provision was only available for tax years 2020 and 2021 as a temporary COVID relief measure. For your 2022 taxes (which you'll file in 2023), you'll need to use your actual 2022 earned income to calculate your EITC. If you're concerned about a lower EITC for 2022, focus on documenting all eligible earned income you did have during the year, and look into other credits you might qualify for like the Child Tax Credit if you have dependents.

In TurboTax, you need to go to the Deductions & Credits section, then look for "Income that qualifies for certain credits." There should be a question about whether you want to use your 2019 earned income. It's easy to miss if you're clicking through quickly!

That's a good point I hadn't considered. I have no idea if he had insurance, but I'll definitely look into that. The police haven't given us much information about his business affairs due to the ongoing investigation. I'm guessing we'll learn more once the criminal case progresses and the estate gets settled. Would business insurance typically cover something like this?

Most legitimate HVAC contractors carry some form of business insurance that might cover situations where they can't complete contracted work. It varies widely by policy, but many include provisions for "business interruption" or "contract fulfillment" that could apply here. The estate administrator would be the one handling these claims once appointed by the court. I'd recommend documenting everything meticulously - your original contract, what was completed, what you paid to the second contractor, etc. This will be important not just for the tax credit but also for any future discussions with the estate. In my situation, the insurance company actually contacted us directly once a claim was filed, but that might take time given the circumstances.

100% this. I got audited specifically on my EEHIC claim last year. They wanted the AHRI certificate showing the exact efficiency ratings, proof the contractor was certified, and itemized invoices showing what portion was for equipment vs labor. The equipment manufacturer specs were super important - they rejected my first submission because it didn't clearly show the SEER2 rating.

That's a great point about industry differences. Do you think this will lead to changes in how companies structure their operations? Like will we see tech companies suddenly investing in more physical assets in certain jurisdictions just to benefit from those exclusions?

I definitely expect to see behavioral changes in how companies structure their operations. We're already seeing some of our tech industry clients evaluating whether to increase substantive operations in certain jurisdictions. This doesn't necessarily mean building factories, but could involve relocating actual R&D teams or other high-value functions to jurisdictions that still offer competitive advantages while meeting substance requirements. Singapore and Ireland, for instance, are promoting their educated workforces and business-friendly environments rather than just low tax rates. The key is having genuine economic activity that justifies the profit allocation, not just paper arrangements.

You're right about the basic framework. The Income Inclusion Rule (IIR) has priority and allows the parent entity's jurisdiction to collect the top-up tax. The Undertaxed Profits Rule (UPR) is a backstop that kicks in if the parent jurisdiction doesn't have an IIR in place. What makes this complex is the implementation timeline. The EU countries are generally moving forward with coordinated implementation, while the US implementation remains uncertain given the political challenges of passing tax legislation. This creates potential for inconsistent application and even double taxation in some scenarios. For your 8-country structure, you'll need to map out which jurisdictions are implementing which rules and when. The OECD has a hierarchy for which country's rules take precedence, but transitional issues are likely during the rollout phase.

What's considered "reasonable" tho? Is there like a percentage of business income that's the standard? I've heard everything from 30% to 60% of profits should be salary.

There's no fixed percentage that's automatically considered "reasonable" - it depends on your industry, role, qualifications, and what similar positions would pay in your area. A good starting point is to research what someone would earn doing your job in your location if they weren't the owner. Sites like Bureau of Labor Statistics or industry salary surveys can help establish this baseline. Some tax professionals suggest that anything less than 40-50% of your business profits as salary might raise eyebrows, but it really depends on your specific situation.

I switched from TurboTax to H&R Block last yr for my s-corp and it was WAY better. TurboTax kept giving me errors about my 941 payments but H&R Block had a specific section for SMLLC S-corps. The questions were clearer and it properly showed how the salary and distributions flow between the 1120S and 1040.

12 How does the interest work though? Like if I'm paying interest to my own account, isn't that just moving money from one pocket to another?

7 The interest works in your favor actually. When you pay interest on a 401k loan, that interest goes back into your own account. So yes, you're essentially paying yourself, which is much better than paying interest to a bank or credit card company. The interest rate is typically prime rate plus 1-2%, so around 6-8% currently. This money gets added to your 401k balance, so in a way, it forces you to contribute a bit extra to your retirement. The only real "cost" is the potential investment growth you miss out on for the money while it's out of your account.

9 Do medical bills count for avoiding the penalty? I have some medical debt I'm trying to clear.