This is such a timely discussion! I'm actually in the middle of getting quotes for a similar dual fuel setup and this thread has been incredibly helpful. One thing I wanted to add based on my research - make sure to also check if your state has any additional incentives that can stack with the federal 25C credit. I'm in Massachusetts and discovered we have a state tax credit for heat pumps that can be claimed in addition to the federal credit. Some states also have cash rebates through their energy efficiency programs. The Database of State Incentives for Renewables & Efficiency (DSIRE) website is a great resource for finding these state-level programs. Also, for anyone considering this upgrade, don't forget about the potential savings on your homeowner's insurance. Some companies offer discounts for energy-efficient heating systems, which can help offset the upfront costs even more!

Great question about dual fuel systems! I went through this exact decision process last year and can confirm that you absolutely can claim the 25C credit with a heat pump/gas furnace combo. The IRS looks at each qualifying component separately, so as long as your heat pump meets the efficiency requirements (SEER2 15.2+ and HSPF2 7.8+), you're good to go. One thing I wish I had known earlier - make sure to get quotes from contractors who are familiar with the IRA tax credit requirements. Some of the contractors I talked to weren't aware of the specific efficiency thresholds or how to properly itemize invoices for tax purposes. You want the heat pump costs clearly separated from the furnace costs on your final invoice. Also consider the climate in your area when deciding on system sizing. In my zone (6A), the dual fuel setup has been perfect - the heat pump handles most of the heating load efficiently, and the gas furnace only kicks in on the really cold days. This gives you maximum energy savings while still qualifying for the full federal tax credit.

One additional consideration that might help with your situation - make sure you're properly tracking the basis adjustments for all shareholders, not just yourself. Since the ERC increases the S-Corp's income by reducing wage expenses, this flows through proportionally to all shareholders based on their ownership percentages. If you have other shareholders, they'll also see increased income on their K-1s and need to adjust their basis calculations accordingly. This becomes especially important if any shareholders are planning to take distributions or sell their shares, since the basis adjustments from the ERC income could affect the tax treatment of those transactions. Also, keep detailed documentation of the ERC calculations and amendments. The IRS has been scrutinizing ERC claims heavily, and having clear records of how you calculated the credit, which quarters you qualified for, and how you properly reflected it on your returns will be crucial if you ever face an audit. The documentation should include your qualification analysis (partial shutdown, gross receipts decline, etc.) and the wage calculations used to determine the credit amount.

I've been following this thread closely since I'm dealing with a similar ERC situation for my S-Corp. One thing I wanted to add that hasn't been fully addressed is the impact on estimated tax payments for the year you amend your returns. Since the ERC effectively increases your S-Corp income (by reducing wage expenses), you might find yourself in a situation where you owe additional taxes on your personal return. If you're making quarterly estimated payments, you may need to adjust your remaining payments for the current year to account for this additional income flowing through from the amended returns. I learned this lesson when I got my amended K-1 and realized I was going to be significantly under-withheld for the current tax year. The IRS can impose underpayment penalties if you don't adjust your estimates accordingly. It's worth running the numbers with your tax preparer to see if you need to increase your quarterly payments to avoid any surprises next April. Also, for those dealing with state conformity issues that were mentioned earlier - make sure you understand how your state handles the timing of when you report the additional income. Some states may require you to report it in the year you receive the federal refund rather than the year you amend the return, which could create another timing difference to manage.

Has anyone here used a specific tax form for education expenses as a business deduction? I'm trying to figure out if these go on Schedule C or if there's another form I'm missing.

I've been dealing with similar education deduction questions for my consulting business. One thing I learned that might help - the IRS has a specific test called the "minimum education requirement" test. If the education is required to meet the minimum requirements of your current business, it's generally not deductible. For your wife's doctoral program, since she already meets the minimum requirements to practice counseling with her Masters, the additional doctorate should qualify as maintaining/improving existing skills rather than meeting minimum requirements. For your accounting degree, the key question is whether you already perform accounting functions in your detailing business. If you're already doing bookkeeping, financial planning, tax prep for the business, then the formal education could be seen as improving those existing skills. But if you're not currently doing significant accounting work, it might be viewed as qualifying you for new responsibilities. I'd recommend documenting exactly what financial/accounting tasks you currently handle for your business before starting the program. This creates a paper trail showing the education improves existing duties rather than preparing you for entirely new ones.

Have you tried contacting your local SCORE office? They provide free mentoring to small businesses and sometimes have resources for tax filing. When I was starting out, they connected me with a retired CPA who helped me file my 1120S for just a small donation to their organization.

Another option to consider is reaching out to local accounting students or recent graduates. Many colleges with accounting programs have students who need practical experience and might help with your 1120S filing for a reasonable fee (often much less than established CPAs charge). You could contact the accounting department at nearby universities - they sometimes have programs where students work on real tax returns under professor supervision. Also, don't overlook the IRS Free File program completely. While it doesn't cover business returns directly, some of the participating software companies offer discounted rates on their business products if you qualify for their personal tax free filing. It's worth checking with companies like FreeTaxUSA or TaxAct to see if they have any promotions running. One last tip: if your S-Corp is relatively simple (single owner, no complex transactions), you might be able to use the fillable PDF forms from the IRS website and file by mail. It's more work but completely free except for postage.

I believe I can share some relevant experience here. I processed taxes for a client in a similar situation last year. They had Marketplace coverage for February only, then transitioned to employer coverage. We initially filed without the 1095-A because they couldn't locate it. The return was accepted and processed. However, approximately 45 days later, they received a notice requesting verification of the Marketplace coverage. By that point, they had located their 1095-A. They submitted it, and the matter was resolved without penalties. That said, I would recommend attempting to obtain the form first if possible. The Marketplace can typically provide a replacement fairly quickly if you contact them directly.

When comparing your situation to other tax scenarios I've seen, you're in a relatively low-risk category. Unlike taxpayers with full-year Marketplace coverage claiming substantial credits, your one-month situation is much simpler. Similar to how a missing 1099-INT for small interest income rarely triggers issues, a brief Marketplace coverage period without premium tax credits typically processes smoothly. In contrast, taxpayers with complex healthcare situations involving multiple family members or significant premium credits face much higher scrutiny. Your Medicare transition is a common life event the IRS routinely processes. While getting the 1095-A is ideal, your refund timing likely won't be affected if you file without it, especially compared to those with more complex healthcare situations.