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!

We both updated our W-4s in January 2024, but you're right - the form doesn't have allowances anymore. I guess I was using the old terminology! When we filled them out, we both selected "single" filing status (even though we're married) and didn't check the box for multiple jobs or put any additional amounts. Basically, we tried to have the maximum withheld. Should we be filling them out differently?

Ah, that explains a lot! By both selecting "single" filing status when you're actually married, you're creating an artificial situation that doesn't match your actual tax filing status. This is a common approach people use to increase withholding, but it can have inconsistent results. A better approach would be to select your actual filing status of "Married" and then use Step 4(c) to specify an additional withholding amount if you want more taken out. The IRS has a Tax Withholding Estimator tool on their website that can help you determine the exact amount to withhold for your desired refund size.

This is actually a really good point! My spouse and I had this exact situation - same company, same W-4 settings, but I was salary (semi-monthly) and she was hourly (bi-weekly). The tax withholding formulas are different for these pay schedules!

What about insurance? The rental companies always try to sell that additional coverage. Is that deductible as part of the rental expense if I use the actual expense method?

Yes, the additional insurance or coverage options you purchase from rental companies would be considered part of your actual rental expenses, so they would be deductible based on your business-use percentage for that specific rental period. Some business owners overlook this, but if you consistently purchase the additional coverage, it can add up to a significant deduction over the course of a year with weekly rentals. Just make sure the insurance expense is clearly itemized on your rental receipts so it's properly documented.

The luxury auto limits still apply to rentals but in a different way. Since you're deducting actual expenses rather than depreciation, you don't run into the same depreciation caps. However, the IRS can still question whether extravagant or luxury vehicle rentals are "ordinary and necessary" business expenses. In your case, since you mentioned you're renting basic economy cars, this shouldn't be an issue. The IRS is mainly concerned with preventing businesses from fully deducting high-end luxury vehicles. Using standard economy rentals for legitimate business purposes shouldn't trigger any special limitations beyond the normal business-use percentage rules.

That's really helpful advice about the approach. I'll definitely try framing it as helping them be compliant rather than accusing them of anything shady. Did you have to talk to your direct manager or did you go to HR/payroll directly?

I started with my direct manager who then connected me with our payroll person. In smaller companies, going directly to whoever handles payroll can be more efficient. The payroll person was actually relieved because she had inherited the system from someone else and wasn't sure if it was correct. She made the change starting with the next pay period.

Yeah, that's what makes this suspicious. POS systems and payroll software typically have separate classifications for tips vs. employer-provided benefits. Someone would have had to deliberately choose to classify these meal vouchers as tips. At my restaurant, our meal credits show up as "non-monetary compensation" on our pay stubs, definitely not as tips.

That's a great suggestion! I hadn't even thought of checking my IRS account. Do you know how quickly that information typically shows up there? My missing W-2 would be for 2024 taxes, so I'm wondering if it would even be in the system yet if the employer hasn't sent it to me.

For current year (2024) tax information, there can be a significant delay before it appears in your IRS account. Employers are required to submit W-2 data to the Social Security Administration by January 31st, but it can take until July or even later before that information makes it to the IRS systems and becomes visible in your online account. Since you're trying to file now rather than waiting several more months, the Form 4852 route with your pay stubs is probably your best option. The online account is more helpful for prior years or if you're willing to wait longer. But it's always worth checking just in case your information is already there!

Yes, I had to do this last year! In TurboTax, you need to enter them as completely separate employers even if they're technically the same company. For the Form 4852 entry, add something to distinguish it in the employer name field - I added "(Form 4852)" after the employer name. This helped TurboTax treat them as separate income sources. Just make sure the EIN (Employer Identification Number) is exactly the same on both entries if they're from the same employer. The IRS computers match by EIN, so that needs to be accurate.