Version 21.07 (2021)2021- Improved the tax estimate in the "Time to FI" section
- Added EIP#3 default payment. Only those who did not receive the full $1400/person will need to override.
- Updated childcare pre-tax limit to $10,500 in Form 2441
- Provided an SEHI+PTC iteration capability

Thanks to MountainLakeMaka and Harry Sit for insights and suggestions on these updates.

**SEHI+PTC iteration capability**The spreadsheet is now attempting to handle the iterative calculations when both Premium Tax Credits (PTC) and Self-Employed Health Insurance (SEHI) premiums are involved, at least for one Schedule C and one SEHI premium. For people with both self-employment income and Affordable Care Act coverage, determining the optimal amount of the SEHI deduction can be an iterative process. See pp. 57-75 of

https://www.irs.gov/pub/irs-pdf/p974.pdf.

These calculations have been tested and appear to converge reliably over a wide range of conditions. To enable this capability,

- Enter the appropriate values in cells B114, B115, AD123 and AE100

- Enter the formula

**=AD159** in cell B48. This enables the iteration

- Entering a specific value, e.g., 0 (zero) in cell B48, or deleting the cell contents, will eliminate the iteration.

- Ensure the "Enable iterative calculation" box is checked in File > Options > Formulas if the iterations should be, but aren't, occurring.

Iteration requires significant extra calculation and decreases spreadsheet responsiveness. Useful if needed, but avoid it otherwise.

If many #Value, #DIVbyZero, etc., errors propagate, put a specific value in cell B48, fix the root cause, and re-enable iteration. If errors persist, reply or PM.

At least a couple of things are not clear:

- Whether the spreadsheet correctly implements the IRS iteration procedure. AFAIK there are no 2021 examples for comparison yet.
- Whether the IRS procedure always provides the most beneficial result for the taxpayer. I may start a separate thread for this specific issue, but meanwhile if anyone knows of 2021 examples for comparison, please reply or PM.

In general, suggestions/comments/corrections on the SEHI+PTC issue are welcome. Somewhat of a niche issue, but mathematically interesting and financially significant when it occurs.

2021 taxes version:

2021 Case Study Spreadsheet**Note:**