Based on your description of My Health CCM's pitch, this has all the hallmarks of an abusive tax shelter. The combination of creating a special purpose LLC solely for tax benefits, making a large "investment" in software licenses, and promises of dramatic tax savings should be raising every red flag. The IRS has been cracking down hard on these types of schemes. They often involve overvalued intangible assets (like software licenses) to create artificial losses that get passed through to your personal return. Even if the promoters claim it's "legal," the IRS can disallow the deductions under the economic substance doctrine. I'd strongly recommend staying far away from My Health CCM. If you're looking to legitimately reduce your tax burden, consider working with a reputable CPA or tax attorney who can help you implement proven strategies like maximizing retirement contributions, proper business expense documentation, or legitimate business structures that serve actual economic purposes beyond tax avoidance. Remember: if someone is cold-calling you with a "tax strategy" that sounds too good to be true, it probably is. Legitimate tax planning doesn't typically require you to invest six figures in questionable software licenses.

As someone who's been through multiple IRS audits, I can tell you that My Health CCM's pitch hits every single warning sign for what the IRS calls "abusive tax avoidance transactions." The fact that they're pushing you to create a special purpose LLC specifically for tax benefits rather than legitimate business operations is a massive red flag. I learned the hard way that the IRS doesn't care what promoters claim is "legal" - they look at the economic substance of the transaction. If you're paying $130k for software licenses that you'll never actually use in a real business, that's exactly the kind of artificial loss creation they go after aggressively. The penalties aren't just financial either. These schemes can put you on the IRS's radar permanently, making you a target for future audits. I'd recommend getting a second opinion from a licensed tax professional who has no financial interest in selling you this "strategy." Most legitimate CPAs will tell you to run from anything that sounds like what you've described. Trust your gut - if it sounds too good to be true, it almost certainly is. There are plenty of legitimate ways to reduce your tax burden without risking your financial future on schemes like this.

@Morita Montoya - You're definitely not too late! I'm a tax professional and can confirm that as a US citizen, you were eligible for all three Economic Impact Payments regardless of where you lived during the pandemic. Here's your action plan: **For 2020 payments (1st: $1,200, 2nd: $600)** - File a 2020 tax return claiming $1,800 in Recovery Rebate Credit - Deadline is April 15, 2024 - so you need to move FAST - Will likely need to paper file (e-filing may no longer be available) - Current processing time for paper returns: 8-12 months **For 2021 payment (3rd: $1,400)** - File a 2021 tax return claiming $1,400 in Recovery Rebate Credit - Deadline is April 15, 2025 - you have more time - Can still e-file through most tax software including FreeTaxUSA - Processing time: 6-8 weeks typically Since you had no US income during those years, you'll just report $0 income and claim the credits directly on line 30 of Form 1040 for each year. No complex calculations needed. **Important:** Don't let the 2020 deadline slip by - that's $1,800 you'd lose forever. Focus on getting that 2020 return filed immediately, even if you tackle 2021 later. Send any paper returns certified mail for proof of timely filing. Total potential recovery: $3,200. Definitely worth pursuing!

@Morita Montoya - As someone who works with expat tax issues, I want to emphasize a few additional considerations for your situation: **Foreign Bank Account Reporting**: Even though you're filing just to claim stimulus payments, be aware that if you had foreign bank accounts with aggregate balances over $10,000 at any time during 2020 or 2021, you may need to file FinCEN Form 114 (FBAR) separately. This has its own deadlines and requirements. **State Tax Considerations**: Depending on which state you're establishing residency in now, you may also need to consider whether you need to file state returns for those years. Most states don't have their own stimulus credits, but it's worth checking. **Documentation for Future**: Keep detailed records of your filing for these years, including proof of your foreign residence during 2020-2021. This could be helpful if you ever face questions about your residency status or tax obligations during that period. **Professional Help**: Given the complexity of your situation (citizen abroad, never filed before, claiming retroactive credits), you might want to consider consulting with a tax professional, especially for the 2020 return given the tight deadline. Many offer reasonable rates for straightforward returns like yours. The good news is you're absolutely entitled to these payments as a US citizen. Just make sure you handle the filing correctly to avoid any delays or complications!

Something nobody's mentioned yet - if you're making under 12k but over 400 bucks, you probably won't owe income tax, but you WILL owe self-employment tax (which is basically Social Security and Medicare). That's about 15.3% of your net profit. So if you made $2,800 but had $800 in expenses, your net profit would be $2,000, and you'd owe about $306 in self-employment tax. Don't be caught off guard by this! A lot of new freelancers don't budget for it and get surprised at tax time.

Unfortunately, there's no way to reduce the self-employment tax rate itself - it's a flat 15.3% on your net self-employment income. However, you can reduce what you pay it on by maximizing your business deductions. The reason self-employment tax kicks in at just $400 while regular income tax has higher thresholds is that self-employment tax is specifically for Social Security and Medicare contributions. When you're an employee, your employer pays half of these taxes for you, but when you're self-employed, you pay both the employee and employer portions. The good news is that you can deduct half of your self-employment tax when calculating your income tax, and you're building credits toward your future Social Security and Medicare benefits. It might seem unfair now, but you're essentially paying into your own retirement and healthcare system. Also, if you're making quarterly estimated tax payments (which you should be if you expect to owe more than $1,000), you can spread this cost out over the year instead of getting hit with one big bill at tax time.

Make sure to check if you get an escrow refund when you pay off your mortgage! When I paid mine off, they had collected extra money in my escrow account for future property taxes, and they sent me a refund check about 3 weeks later. This refund is NOT taxable income, but it can complicate your property tax deduction. If part of that refund was for property taxes they collected but hadn't paid yet, you can only deduct property taxes actually paid during the year (either by you or your mortgage company). I made the mistake of deducting the full year's property taxes when part of it was actually refunded to me in that escrow refund. My accountant caught it, thankfully, but it's something to watch out for.

One thing to keep in mind is timing - if you're planning to pay off your mortgage this year, consider the timing strategically for tax purposes. If you pay off in early 2025 before your July property tax payment, you'll be responsible for both property tax payments directly, which means more paperwork but also ensures you have clear documentation for everything you paid. Also, don't forget to save ALL your closing documents when you pay off the mortgage. Your final settlement statement will show any property tax prorations, escrow account balances, and other details that might affect your tax filing. I learned this the hard way when I needed to reference mine months later and had to dig through a pile of paperwork! Your mortgage company should provide you with a final escrow statement showing exactly what property taxes they paid on your behalf during 2025, which will match what appears on your 1098. This makes it easier to reconcile everything when tax time comes.

Just to add another perspective on this - I went through something very similar with my father's trust last year. One thing that really helped me understand the process was realizing that the K-1 is essentially the trust's way of "passing through" income and expenses to you as the beneficiary. The key thing to remember is timing - the trustee has until the tax filing deadline (usually April 15th, or October 15th if they file an extension) to get you your K-1. If you're waiting on it and it's getting close to your filing deadline, you might want to reach out to the trustee to check on the status. Also, since you mentioned this was from a house sale, pay attention to whether any of the gain shows up as capital gains on your K-1. With the stepped-up basis mentioned earlier, there might be little to no taxable gain, but it's still important to report it correctly on your return. The whole process seems overwhelming at first, but once you get your K-1 and start working through it, it's more straightforward than it initially appears. The trustee should also be able to answer basic questions about what's on your specific K-1 if you're confused about any of the amounts.

One thing I haven't seen mentioned yet is the importance of keeping good records throughout this process. Make sure you save copies of the trust document, any property appraisals done after your mom's passing, the closing statement from the house sale, and of course your K-1 when you receive it. Also, if the trust had any expenses related to the sale (realtor commissions, repairs, legal fees, etc.), these might show up as deductions on your K-1 that could reduce your taxable income. The trustee should account for these properly, but it's worth understanding what expenses were involved. Since this is your first time dealing with trust taxation, consider keeping everything organized in case you have questions down the road or need to reference these documents for future tax years. Trust administration can sometimes span multiple tax years, so good record-keeping from the start will save you headaches later. The good news is that since you mentioned the trust is winding down after distributing everything, this should be a one-time situation for you rather than an ongoing annual tax complication.