One more thing to keep in mind as you navigate your first S corp year - make sure you're tracking your basis in the S corporation throughout the year. Your basis affects how much of any losses you can deduct on your personal return, and it's adjusted by your share of income, losses, and distributions. Many new S corp owners overlook this, but it's crucial for tax planning. Your basis starts with your initial investment in the corporation, increases with your share of income and additional contributions, and decreases with distributions and your share of losses. If distributions exceed your basis, the excess becomes taxable capital gain. I'd recommend keeping a simple spreadsheet to track these adjustments monthly - it'll make year-end tax prep much smoother and help you make informed decisions about timing distributions vs. leaving money in the business.

As someone who's been through the S corp conversion process recently, I can confirm what others have said - you're on the right track! The S corp itself doesn't make federal income tax estimated payments since it's a pass-through entity. All the income, deductions, and credits flow through to your personal return. However, I'd add one important reminder about the timing of your personal estimated payments: since S corp income is reported on a K-1 that you typically don't receive until after year-end, you'll need to estimate your quarterly payments based on projections. I found it helpful to review my profit & loss statements monthly and adjust my estimated payments accordingly. Also, don't forget about potential backup withholding requirements if your S corp receives certain types of income without proper tax ID verification. And if you have any passive income (like rental income from corporate-owned property), that could trigger additional corporate-level taxes even for an S corp. The learning curve can be steep in that first year, but getting comfortable with these distinctions will save you headaches down the road!

Check ur bank account! Just got mine this morning and I was approved 1/26

Same situation here! Filed Indiana on 1/28 and got approved but no deposit date yet. Really hoping it comes through soon - these delays are stressful when you're counting on that money. Thanks for asking this question, the responses are really helpful!

I accidentally did this exact same thing when I started at my company 4 years ago! When I realized my mistake, I was terrified I'd get fired or be in legal trouble. When I told HR, they just had me fill out a new W-4 with the correct info and they filed a W-2c (corrected W-2) for the previous years. The whole process took like 15 minutes of my time. They were totally cool about it - said it happens all the time.

Don't stress too much about this! I work in payroll and see these types of errors fairly regularly. The fact that you've been filing your personal taxes correctly with your real SSN actually works in your favor - it shows there was no intent to deceive. Your employer will need to file corrected W-2s (W-2c forms) for the affected years, but this is a standard process that payroll departments handle all the time. Most companies have procedures in place for exactly this situation. The key things to bring to HR: your correct SSN, be honest about when the mistake happened, and emphasize that you want to get it fixed properly. They'll likely appreciate that you're being proactive about correcting it rather than waiting for the IRS to flag the discrepancy. You definitely won't lose your job over an honest mistake like this. Good luck with the conversation!

I'm so relieved to see others have gone through this exact same panic! I just got off another call with my 529 plan administrator and they confirmed the withdrawal request is being processed. They said since it's still in cash and no investment transactions occurred, it should be back in my checking account within 1-2 business days with no tax reporting required. The whole experience has definitely been a wake-up call about being more careful with transfers. I'm already planning to implement several of the suggestions from this thread - the staging account idea sounds perfect, and I'm definitely setting up those transfer confirmation screens. Thanks everyone for the quick responses and reassurance! Sometimes you just need to hear from people who've actually been there. I'll update this thread once the money is back in my account in case anyone else finds themselves in this situation.

Great to hear you got this resolved so quickly! Your experience is a perfect example of why it pays to act fast with these kinds of mistakes. For anyone else reading this thread, I'd also recommend taking a screenshot of your online banking transfer confirmation screen when you catch a mistake like this. It can serve as documentation of the timing if you ever need to prove to the IRS that the withdrawal was an immediate error correction rather than a regular distribution. Most 529 administrators are pretty good about handling these situations, but having that timestamp evidence in your records never hurts. I learned this tip from a tax professional after I had a similar (but more complex) 529 mix-up a few years ago. Looking forward to your final update once the funds are back where they belong!

Make sure you get proper valuations for any hard-to-value assets in your inheritance! My dad left me some closely-held business interests and collectible coins that weren't publicly traded. The executor used a ballpark estimate for the business interests, but when I sold them 2 years later, the IRS questioned my basis and I had to pay for a retroactive professional valuation. For the coins, I had to hire a numismatic expert. For your stocks, if they're publicly traded, it's pretty straightforward - just the closing price on date of death (or alternate valuation date if the executor chose that). But for anything without a clear market value, document document document!

Something to consider as you're deciding whether to sell or hold - if you're in a lower income bracket this year, you might want to take advantage of the 0% long-term capital gains rate. Since your basis stepped up to the $98,000 value at death, any gains you'd pay tax on would only be from appreciation since you inherited the stocks. If you're single and your taxable income is under $47,025 (or $94,050 if married filing jointly), you could potentially sell some shares and pay zero federal tax on the gains. This could be a great opportunity to rebalance your portfolio or diversify if too much of your inheritance is concentrated in individual stocks. Just make sure to factor in any other capital gains you might have this year from other investments, as they all count toward determining your tax bracket for LTCG purposes. You might also want to consider spreading sales across multiple tax years if you're close to the income thresholds.