


Ask the community...
Has anybody tried FreeTaxUSA? I've used it the last two years and it's WAY cheaper than both TurboTax and H&R Block. Federal filing is free and state is only like $15. It doesn't hold your hand quite as much but if you know the basics it works great.
Don't forget about the "Deluxe" trap that both companies use. The basic version advertised at a low price usually won't cover homeowner deductions or self-employment income. You'll need at least the Deluxe version for mortgage interest and the Self-Employed version for your freelance work. If you really want to save money, the IRS has a Free File program where you can use name-brand tax software for free if your AGI is under about $73k. Worth checking that out before paying for either one.
This!! I got tricked into upgrading last year. Started with the "free" version and ended up paying $120 by the end with all the required upgrades for my situation.
I'm a contractor with an S Corp too, and my accountant explained it this way: There are THREE completely different tax obligations you need to understand: 1) Sales tax - which you may not need to collect/pay if your state doesn't tax labor services 2) Payroll taxes - which your S Corp MUST pay on your reasonable salary 3) Income taxes - which you need to pay quarterly on your expected pass-through profits Your advisor is talking about #1 but ignoring #2 and #3. Sounds like you need a different tax professional who understands S Corps better.
This breakdown is super helpful! So I think I understand now - my S Corp handles the payroll taxes on my $75K salary. But I personally need to make quarterly estimated payments on the profits that pass through to me at the end of the year. Any tips on calculating those payments so I don't underpay and get hit with penalties?
A simple approach is to estimate your annual pass-through profit, calculate the approximate tax you'll owe (federal plus state), and divide by four for your quarterly payments. For more precision, use the IRS Form 1040-ES worksheet to calculate your required payments. The safe harbor rule is worth knowing too - if you pay at least 100% of last year's tax liability (or 110% if your income is over $150,000), you won't face underpayment penalties even if you end up owing more.
One thing nobody's mentioned yet - depending on your state, you might also have state-specific S Corp tax obligations beyond the federal ones! Here in California, for example, S Corps have to pay a minimum $800 annual franchise tax regardless of profits. Also worth noting that many states have their own quarterly estimated tax requirements for pass-through entity income. So you need to check both federal AND state requirements.
Something similar happened to my sister. She was expecting her usual big refund and got almost nothing. Turns out she had checked a box on her employer's benefits portal that adjusted her withholding without realizing it. Might be worth checking if you made ANY changes to benefits or payroll settings last year.
I don't think I made any changes to my payroll settings or benefits... at least none that I remember. Is there a specific place I should look for this kind of accidental change? Like a specific form or section of my company's HR portal?
Check your employee portal under tax withholding or payroll settings. Sometimes these options are buried in benefits enrollment pages or year-end updates. You should also request a copy of your current W-4 on file with your employer. Compare it with your previous one if you have it. Sometimes HR makes adjustments during annual updates that don't get clearly communicated to employees.
I noticed a huge difference too! But my income went up about $8,000 this year, so that pushed me into a higher tax bracket. Could that have happened to you? Even a small raise might have changed your tax situation.
That's not how tax brackets work! Only the income within each bracket gets taxed at that rate. Moving into a higher bracket doesn't suddenly tax ALL your income at the higher rate - just the portion above the threshold.
Just want to throw in another potential option - your husband might not necessarily need to file a full Schedule C if the speaking was very minimal and he doesn't plan to do it again. There's something called the "simplified Schedule C" or Schedule C-EZ that might be available. Some tax software will still walk you through the full Schedule C questions but produces the simplified version if you qualify. I believe the requirements are: no inventory, no employees, business expenses under $5,000, no home office deduction, no depreciation, and net profit. Might be worth checking if your software offers this option!
The Schedule C-EZ was discontinued after 2019. Unfortunately everyone has to use the regular Schedule C now, even for small amounts. But I agree that the tax software will likely simplify the process once you answer the basic questions!
I had no idea the C-EZ was discontinued! Thanks for the correction. I guess it shows how long it's been since I had any 1099 income. You're right that the tax software will still make it easier than it looks on paper. Most of the questions are straightforward once you get past the business classification parts.
Don't forget that with self-employment income, even just from occasional speaking gigs, you'll need to pay the self-employment tax (15.3%) on top of income tax. That can come as a shock if you're not prepared for it. The good news is that you can deduct half of the self-employment tax on your 1040, and you can also take deductions for business expenses that will reduce the taxable amount.
This is what hit me hard last year! Got a couple 1099s and didn't realize I'd owe an extra 15.3% self-employment tax. My refund turned into owing $800 š© Definitely set aside money for this if your husband does more speaking next year!
Mason Lopez
Have you tried asking your attorney or banker for recommendations? That's how I found my CPA. Attorneys and bankers work closely with accountants and usually know who's good. My bank manager introduced me to my current CPA who's been amazing with my small manufacturing business. Also check with your industry association if you belong to one. Industry-specific groups often have lists of accountants who specialize in your field. I'm part of a local manufacturing association and they maintain a preferred vendor list that's been super helpful.
0 coins
Pedro Sawyer
ā¢That's a smart idea I hadn't considered. I do have a good relationship with my business banker. Did your banker connect you directly or just give you a name to contact? I'm wondering if a warm introduction might help get past the "not taking new clients" barrier.
0 coins
Mason Lopez
ā¢My banker actually made a direct introduction via email, which definitely helped get me in the door. He specifically mentioned my business challenges and growth plans, which I think made the CPA more interested in working with me. A warm introduction from a mutual contact can absolutely help bypass the "no new clients" response that's so common with established CPAs. CPAs often prioritize clients who come through referrals from trusted sources because it indicates you're likely to be a serious business owner who values professional advice. It's worth asking your banker for that direct introduction rather than just getting a name - makes a world of difference!
0 coins
Vera Visnjic
Don't forget to check reviews! Google, Yelp, and even Facebook can give you insights into how different CPAs treat their clients. I found my awesome CPA through Google reviews - she had nearly 50 five-star ratings with detailed comments about how she'd helped small businesses.
0 coins
Jake Sinclair
ā¢I would be super careful with online reviews for CPAs. My friend owns a tax practice and said there are firms that offer discounts in exchange for positive reviews. Plus, a lot of the negative reviews are from people who are mad because the CPA wouldn't do something illegal or aggressive with their taxes!
0 coins