I'm in a very similar boat - just started my consulting business in late 2024 and made about $2,100. I was also stressing about whether to hire a CPA, but after reading everyone's advice here, I think I'm going to try the DIY route this year too. One thing I learned from talking to other small business owners is that you can always amend your return later if you miss something significant. For our revenue levels, the potential mistakes aren't going to be catastrophic. Plus, going through the process yourself this first year will help you understand your business finances better, which is valuable knowledge as you grow. I'd say save the CPA money for now and put it toward marketing or inventory for your shop instead. That investment is more likely to generate returns at this stage than paying hundreds for tax prep on such a straightforward situation.

I totally understand your hesitation about spending money on a CPA when funds are tight! As someone who's been through this exact situation, I'd say go ahead and file yourself this year. With only $1,350 in revenue from a partial year of operation, your tax situation is going to be pretty straightforward. The key things to focus on are: keep excellent records of all your startup expenses (they're often deductible), make sure you're tracking business expenses separately from personal ones, and don't forget about things like supplies, advertising costs, or any business-related travel. Tax software like TurboTax Self-Employed or even FreeTaxUSA (which is cheaper) will walk you through everything step by step. They're designed to handle Schedule C filings and will ask you all the right questions about deductions. Save that CPA money and invest it back into your retail shop - maybe for inventory or marketing to help get things rolling. You can always hire a professional next year when your business is more established and potentially more complex. For now, you've got this!

Just wondering - did you claim "Exempt" on your W-4 by accident? I did that one year thinking it meant I was exempt from having to fill out the complicated worksheet. Big mistake! It actually tells your employer not to withhold ANY federal taxes.

I feel for you - this exact same thing happened to me last year! The most important thing is not to panic. You're definitely not "completely screwed." First, check if you accidentally marked "Exempt" on any of your W-4 forms. That's the most common reason employers don't withhold federal taxes. If you did mark exempt without meeting the very specific IRS requirements (basically owing $0 in taxes the previous year AND expecting to owe $0 this year), that would explain everything. For your current situation, you'll likely owe taxes for 2023, but with a child, you may qualify for significant credits like the Child Tax Credit ($2,000) and potentially the Earned Income Credit depending on your total income. These credits can drastically reduce what you actually owe - you might even get a refund despite no withholding! Going forward, submit a new W-4 to your dental office employer immediately. At $24/hr working 36-40 hours, you should definitely have federal withholding. Ask payroll to review your form with you to make sure it's filled out correctly. Don't let the IRS rejection scare you - they often reject returns for simple data entry errors. Double-check that all your W-2 information matches exactly what you entered in your tax software.

I work in financial aid administration at a state university, so I can provide some insight into this process. When students mark "No" for tax filing but actually did file, it typically gets caught during verification - either random verification or targeted verification due to discrepancies. The good news is this happens more often than you'd think, and it's usually straightforward to resolve. Here's what I recommend: 1) Submit your correction request ASAP (which you've done) 2) Gather your tax return transcript from IRS.gov - specifically the "Return Transcript" for 2023 3) Write a brief explanation letter stating the error was accidental 4) Follow up with a phone call in 2-3 days to ensure your request was received and processed. Most schools can fix this within 48-72 hours once they have the documentation. The 5-7 day timeline they gave you is probably conservative. Don't worry about IRS complications - they're not involved in this correction process at all.

I went through this exact same situation two years ago! I accidentally marked "No" on my FAFSA when I had actually filed my taxes in January. The panic was real, but here's what happened: My school's financial aid office caught it during their routine verification process about 6 weeks later. They sent me a simple email asking for documentation to resolve the discrepancy. I provided my tax transcript from IRS.gov and wrote a one-page explanation that it was an honest mistake. The whole correction took about 4 business days once I submitted the documents. My aid package wasn't affected at all - they just updated their records and moved on. The key is being proactive like you're already doing. Financial aid offices deal with these kinds of errors constantly, especially with complex forms like the FAFSA. As long as you're responsive and provide the documentation they need, it's usually just a minor administrative fix. Don't stress too much about it!

I've been following this discussion with great interest as someone who recently transitioned from an LLC to a C corp for my digital marketing agency. The insights about C corp vs S corp compensation differences have been eye-opening! One aspect I haven't seen discussed yet is how the timing of salary adjustments affects your overall tax planning strategy. I learned from my tax advisor that if you're planning to change your salary structure, it's better to implement changes at the beginning of the tax year rather than mid-year to avoid complications with quarterly estimated tax payments and payroll tax calculations. Also, for those considering salary optimization, don't forget about the impact on workers' compensation insurance premiums if your state requires coverage for corporate officers. In my state, the premiums are calculated based on your salary, so artificially low salaries can sometimes trigger minimum premium requirements that actually make the lower salary less beneficial. Dylan, your current structure sounds very reasonable based on everything discussed here. The 29% salary-to-revenue ratio that Arjun mentioned aligns with what I've seen recommended for professional services businesses. I ended up settling on a similar percentage for my agency after weighing all the factors beyond just immediate tax savings. The documentation aspect that Paolo mentioned is crucial - I keep a folder with industry salary surveys, job posting screenshots from similar positions, and notes about my decision-making process. Better to have it and not need it than the other way around!

This has been such a comprehensive discussion! As someone who's been running my own C corp for about 5 years now, I wanted to add one more practical consideration that hasn't been mentioned yet - the impact of your salary decisions on your personal financial planning beyond just taxes. When I first set up my C corp, I was so focused on tax optimization that I set my salary quite low. But I quickly realized this created problems when applying for a personal mortgage - underwriters look at your W-2 income, not your business profits, when qualifying you for loans. Even though my business was profitable, my low salary made it difficult to qualify for the mortgage amount I needed. Similarly, if you're planning to apply for personal credit cards, auto loans, or other personal financing, lenders typically base their decisions on your reported salary income. This is different from business lending where they look at business financials, but for personal financial products, your W-2 is what matters. Dylan, your $125k salary gives you solid personal income documentation for any future personal financing needs while still being tax efficient. It's another reason why your current structure seems well-balanced - you're optimizing for multiple financial goals, not just immediate tax savings. For anyone else reading this thread, I'd recommend thinking about your 3-5 year personal financial goals when setting your C corp salary. Sometimes paying a bit more in taxes now is worth it for the financial flexibility it provides down the road.

last year mine hit feb 27th exactly. hoping for the same this time around! 🤞

Same boat here! Filed early and now playing the waiting game. From what I've researched, the PATH Act hasn't changed - still requires IRS to hold EITC/CTC refunds until mid-February at earliest. But honestly the uncertainty every year is stressful when you're counting on that money for bills and expenses. Would be nice if they could give us more concrete dates instead of "by end of February" 😩