I'm also navigating S-Corp taxes for the first time and this thread has been incredibly helpful! One thing that's been confusing me is the timing of when these adjustments should be made. Do you make the Schedule L adjustments based on the full year's activity, or do you need to track these differences throughout the year? I've been using QuickBooks Online and wondering if there's a way to set up accounts that automatically separate book vs tax items as transactions happen, rather than trying to reconcile everything at year-end. Also seeing a lot of mentions about shareholder basis tracking - is this something that needs to be reported anywhere on the actual tax return, or is it just for our own records to know how much we can distribute tax-free? I feel like I'm missing some fundamental concept about how S-Corp equity works differently from regular corporations. Thanks to everyone sharing their experiences - it's reassuring to know this confusion is normal for new S-Corp owners!

This has been such an educational thread! I'm in my third year with an S-Corp and still learning new things about Schedule L. One thing I wanted to add that hasn't been mentioned yet is the importance of keeping good records of your initial capital contributions. When I first set up my S-Corp, I didn't properly document my initial cash investment and equipment contributions. This caused major headaches when trying to calculate my starting shareholder basis and reconcile Schedule L in year two. I had to go back and recreate documentation with fair market values for equipment I'd contributed. For anyone just starting out with their S-Corp, make sure you properly document and value everything you put into the company from day one. It makes the Schedule L reconciliation process much smoother and helps with that shareholder basis tracking everyone's been discussing. Also, regarding the retained earnings differences - I've found that most of the confusion comes from not understanding that S-Corp "retained earnings" on Schedule L is really "Accumulated Adjustments Account" which behaves differently than regular corporate retained earnings. It's worth reading up on AAA vs retained earnings for S-Corps if you really want to understand what's happening behind the scenes.

Has anyone else noticed the Where's My Refund tool is completely useless for tracking physical checks? It told me "Your refund was sent to your bank" when I was getting a paper check. 😡 Nothing but problems this year!

Just wanted to add my experience for anyone still waiting - I had a similar situation last month where my check took almost 4 weeks to arrive after the 846 date. The key thing I learned is that the 846 date is definitely when they mail it, but delivery times have been really unpredictable lately. What helped me was checking with my local post office to see if they were holding any mail for my address. Turns out my check had been sitting there for over a week because the mail carrier couldn't fit it in my small mailbox and didn't leave a notice! Might be worth calling your post office if you're getting close to that 4-week mark. Also, make sure your mailbox has your name clearly visible - I've heard of checks being returned because the carrier couldn't confirm the recipient at the address.

Has anyone actually calculated the ROI on becoming an EA? Like compare the time spent studying (which looks massive from what people are saying) vs just paying a really good tax strategist for a few hours of their time each year? Seems like it might be more efficient to just pay for expertise rather than become the expert...

I was in almost the exact same situation as you about 2 years ago - fascinated by tax strategy but no desire to prepare returns for clients. I ultimately decided to pursue the EA certification and it's been one of the best investments I've made. Here's what I learned: the EA exam forces you to understand not just what tax strategies exist, but WHY they work and when they apply. This deeper understanding has been invaluable for my own businesses. I can now spot opportunities my previous accountant was missing and have meaningful conversations about complex strategies. The time investment is real though - I spent about 250 hours studying over 8 months while working full-time. But consider this: those hours gave me knowledge that saves me thousands every year and will continue to do so for decades. One unexpected benefit: having the EA credential gives you credibility when discussing strategies with other professionals. My attorney and financial advisor take my tax planning ideas much more seriously now, which has led to better overall wealth planning. If you're truly passionate about tax law like you describe, I'd say go for it. The knowledge compounds over time, especially as your business ventures grow more complex.

Late to the party but another option: calculate your taxes ALL THREE WAYS! Run the numbers as: 1. Married filing jointly 2. Married filing separately 3. As if you were both still single (for comparison) This will show you the exact marriage penalty/bonus in your situation. My wife and I have similar incomes to you guys ($170k and $135k) and we found filing jointly saved us about $3,800 compared to separate even though we have the "penalty" compared to when we were single. Tax software makes this pretty easy to model different scenarios.

Great advice from everyone here! As someone who went through this exact situation two years ago (similar incomes, newly married), I can confirm that running the calculations both ways is absolutely worth it. One thing I'd add that hasn't been mentioned much - don't forget about retirement account contribution limits if you're both maxing out 401(k)s. The income limits for IRA deductibility change when you're married filing jointly, and with your combined income around $320k, you might lose the ability to deduct traditional IRA contributions that you could make when single. Also, if either of you contributes to an HSA, those limits and eligibility rules can change too. We ended up saving about $4,200 by filing jointly despite losing some deductions we had when single. The higher standard deduction and avoiding the loss of various credits made joint filing the clear winner for us. Definitely echo the suggestion to use tax software to model both scenarios - seeing the actual dollar difference makes the decision much easier than trying to figure it out theoretically!

Just a heads up - if you decide to estimate your income, be VERY careful about tips. The IRS watches server income closely because underreporting tips is common. Remember that Denny's would have reported your credit card tips, and they've likely already submitted that info to the IRS.

Dylan, I went through this exact situation a few years back with a restaurant job! Here's what worked for me: First, try to reconstruct your income using any records you have - bank deposits, credit card statements showing tip deposits, even text messages about your schedule. For the W-2 issue, you have two main paths: 1) File Form 4852 with your best estimates, or 2) Try to get your wage transcript from the IRS first (either online or by calling). The transcript will show exactly what Denny's reported. One thing to keep in mind - restaurants are required to report all credit card tips to the IRS, so they definitely have records of at least that portion of your income. Your estimate needs to be reasonably close to what they reported, especially for tips. If you're running out of time before the deadline, don't panic about filing an extension (Form 4868). It gives you until October 15th to file, though you still need to pay any taxes owed by the original deadline to avoid penalties. The key is don't skip reporting this income entirely - that will cause bigger problems than filing with reasonable estimates and correcting later if needed!