But if I started my foreign assignment on April 15, 2022 (earlier than the example's June 1), wouldn't the period from May 13, 2022 to May 12, 2023 work just fine? All those days would still be within my foreign presence period, right?

If you started your foreign assignment on April 15, 2022, then yes, a period from May 13, 2022 to May 12, 2023 would technically work for you. But the IRS example is specifically dealing with someone who began their foreign presence on June 1, 2022. The key is finding the optimal 12-month period that maximizes your qualifying days. If you started on April 15, you might actually have a different optimal 12-month period than the one in the example. You'd need to count forward 330 days from your start date (accounting for any US visits) and then establish your specific 12-month period.

As far as I know, the basic mechanics of the physical presence test aren't changing for 2025. The 330-day requirement and 12-month period calculation should remain the same. What might be getting more scrutiny is whether digital nomads truly have a "tax home" in a foreign country, which is a separate requirement for the FEIE.

Can I even open my own bank account at 17 though? I thought you had to be 18 to do that without a parent.

Most major banks offer teen checking accounts starting around age 13-16, but they typically require a parent as a co-owner until you're 18. However, some credit unions and online banks have better options for minors with more privacy. Even with a joint account, your dad would technically be violating the account agreement if he took money that was clearly yours (like a tax refund) for his own use. You could also consider asking another trusted adult (like an aunt, uncle, or grandparent) to help you open an account instead of your dad.

What tax software did you use? I'm in the same situation and need something simple.

That's super helpful context from someone in the same industry! Can I ask how you handled the reasonable salary requirement for S-corps? I've heard the IRS scrutinizes brewery owners who take too little salary to avoid payroll taxes.

Great question! For breweries, this is indeed tricky. We looked at what comparable positions would earn in our area (head brewer, operations manager, etc.) and set salaries accordingly. For the first two years, our salaries were about 50-60% of our total compensation, with the rest as distributions. The IRS does look closely at this industry, so we documented our salary-setting process carefully. We also made sure our salaries increased as the business grew more profitable. Having documentation that shows your salary determination wasn't arbitrary is key if you ever get questioned. Our accountant had us keep notes from our meetings where we discussed compensation and market rates.

This is SO important. We opened our brewery in Massachusetts and totally got blindsided by state-specific requirements. Would have saved a bunch of headaches and money if we'd considered state tax implications from the beginning.

Do you know how much it typically costs to file an amended return if you use a tax preparer? I'm in a similar boat but with a $120 discrepancy and wondering if it's worth paying someone to fix it.

Most tax preparers charge between $75-150 to file an amended return, even for something simple like this. This is why many people choose not to amend for very small amounts - the preparation fee often exceeds the tax difference. If you're comfortable doing it yourself, you can file a 1040-X for free. It's not extremely complicated for a simple W2 correction. You'd just need to fill out the form showing the original amounts, the corrected amounts, and the difference, then provide a brief explanation like "Received W2c from employer with wage adjustment.

Yes, your employer sends the corrected W2c to the Social Security Administration, which then shares the info with the IRS. So the IRS will eventually have both sets of numbers. This is actually why small discrepancies like this sometimes get flagged in their automated system - their records won't match what you filed.

You can request copies of your wage and income transcripts from the IRS for free. Go to IRS.gov and search for "Get Transcript Online" or call their transcript request line at 800-908-9946. This will give you all the info reported to the IRS like your W-2s and 1099s for 2021. For bank statements and other documents, contact those institutions directly for replacements.

Unfortunately, you can't claim Hurricane Helene disaster losses on your 2021 return since the disaster occurred in 2024. Casualty losses must be claimed for the tax year in which they occurred. You'll need to claim Helene-related losses on your 2024 tax return (which you'll file in 2025) or potentially on an amended 2023 return if you choose to claim the loss in the immediately preceding year, which is sometimes allowed for federally declared disasters. But for your 2021 return that you're filing now, you can only claim the extension - not any hurricane-related losses.

Thanks for clarifying that! Makes sense that I can't claim 2024 losses on a 2021 return. I'll focus on just getting the 2021 return filed with the extension for now and deal with the hurricane losses on my 2024 taxes next year.