We use Drake Tax Software for our small C-corp and it works great for 1120 filing. The software costs around $650 for the business package but it's much cheaper than hiring a CPA firm. It handles the e-filing seamlessly and has good import options for QuickBooks. One thing to watch out for with your situation - if the shareholders are taking money out less than they put in, make sure you properly document whether these are intended as loans, returns of capital, or compensation. The IRS looks closely at C-corp transactions with owners because they know people try to avoid double taxation.

Just want to add that if the C-corp is operating at a loss in the first year (which is common for startups), you need to be extra careful with how you classify shareholder compensation. The IRS might question why you're paying salaries when there's no profit. Make sure any compensation is "reasonable" for the services provided. Another option nobody mentioned is using a service like Tax Preparation Financial in your area - they often have reasonable flat fees for basic C-corp returns and can handle the employment issues properly.

Just want to add something important: even if you're below the minimum filing threshold, you might WANT to file anyway. I didn't have to file last year (made about $10,200), but I filed anyway and got back all my withheld income tax PLUS qualified for a partial Earned Income Credit. Ended up getting almost $1,800 back! Don't leave money on the table by not filing when you don't "have to.

Just to clarify something I learned the hard way: the $400 self-employment threshold is separate from the standard filing threshold. I made $12,000 from my regular job and $350 from selling crafts online last year. My tax software said I didn't need to file because I was under the standard threshold AND under the self-employment threshold. But if I had made $420 from my crafts, I would have needed to file even though my total income was still below the standard threshold. The thresholds work separately, not together.

Whatever you do, stay away from the "free" tax preparation software. I tried using FreeTaxUSA for my side gigs last year and it was TERRIBLE for handling multiple 1099s properly. Ended up having to pay a professional to fix all the mistakes after I got an audit notice.

Reading through all these comments, I'm seeing a lot of different options mentioned. As someone who's dealt with IRS compliance issues for small businesses, I'd suggest being really careful about who you trust with a complex situation like yours. The $800 Jackson Hewitt quote isn't unreasonable given your circumstances - 18 income sources plus an unfiled year is genuinely complex work. But before you commit, I'd recommend getting a second opinion from an Enrolled Agent (EA) or CPA who specializes in gig worker taxes. They're often more experienced with the specific deductions and strategies that can really benefit someone in your situation. Also, since you mentioned getting over $6,300 back, make sure whoever prepares your return explains the refund breakdown. With that much self-employment income, you want to understand if you should be making quarterly estimated payments going forward to avoid penalties next year. That's something a good tax professional should definitely discuss with you as part of their service.

I'm a bit confused by the differences in tax rates. How much higher are the trust tax rates compared to individual rates? I'm the beneficiary of my grandparent's trust and I've been wondering why the trustee is so adamant about distributing all the income each year.

This is a great discussion that really highlights how complex trust taxation can be! As someone who's dealt with similar confusion, I want to add one more important consideration that might help others reading this thread. Even if you could somehow modify your trust to qualify as a simple trust, you need to think carefully about whether that's actually beneficial in the long run. While the tax rate compression issue is real (trusts hitting 37% at just $14,500 vs $578,000+ for individuals), there are other factors to consider. Simple trust status means ALL income must be distributed and taxed to beneficiaries every year, regardless of whether they need the money or whether it's the optimal time tax-wise. With a complex trust, the trustee has flexibility to distribute income in years when beneficiaries are in lower tax brackets, or retain income in years when beneficiaries have unusually high income from other sources. Also, once income is distributed from a simple trust, it's gone from the trust permanently. Complex trusts allow for more sophisticated tax planning strategies, like timing distributions to offset capital losses or spreading income across multiple beneficiaries. The "election" you were hoping for doesn't exist precisely because Congress wanted to prevent tax gaming - but the flexibility of complex trusts often provides better overall tax outcomes when managed properly.

quick tip: sign up for informed delivery with usps. sometimes you'll see your refund check in the mail before your transcripts even update

Cycle 02 processes weekly on Thursdays, so your transcript updates Friday mornings. The timing depends on where you are in the queue and if there are any issues with your return. If it's been processing normally, refunds typically come 2-3 weeks after your return is accepted, but delays can happen if there are verification issues or high volume. Check your transcript Friday mornings and look for a DDD (Direct Deposit Date) - that's when you'll know exactly when your refund is coming.