


Ask the community...
Something similar happened to me, and I eventually found out my payment got applied to the wrong tax year. When you made the payment, did you select 2025 instead of 2024 by accident? The EFTPS interface is confusing because you make Q4 2024 payments in January 2025, and it's easy to select the wrong year. I'd recommend checking your EFTPS payment history for other tax years - your payment might be sitting there. Also, did you print or save the confirmation page after making the payment? That confirmation number is gold in these situations.
Thanks for the suggestion! I just went back and checked payment history for both 2024 and 2025, but don't see anything for that January payment in either year. And yes, the EFTPS interface is super confusing with the year selection. Unfortunately I didn't save the confirmation page because I've never had issues before and got complacent. Definitely won't make that mistake again - I'm taking screenshots of everything now!
Call the IRS and request a payment trace. Have your bank statement ready showing the exact date and amount that was debited. The IRS can usually find misapplied payments pretty quickly when you have the proof it left your account. Also, create an online account at IRS.gov if you haven't already. Sometimes you can see payment history there that doesn't show up in EFTPS for whatever reason. The systems don't always talk to each other perfectly.
Someone correct me if I'm wrong, but I'm pretty sure that since you never actually conducted business (no income at all), you might be able to deduct these as startup expenses on your personal return instead of dealing with all the S-Corp headaches. IRS Publication 535 covers business startup costs, and you can deduct up to $5,000 in the first year. Might be simpler than filing a whole corporate return for just some travel expenses.
This is incorrect advice. Once they formed the S-Corp, they need to file as an S-Corp. The startup costs would be claimed on the S-Corp return, not their personal return directly. The S-Corp loss then flows through to their personal return via the K-1. If they had incurred the expenses before forming the business entity, your advice might apply, but not in this case.
I just went through this exact situation last year. Here's what I'd recommend: 1. File the 1120-S for your S-Corp (due March 15) 2. Report the expenses as business losses 3. Those losses will flow through to your personal return via K-1 4. For affordable filing, check out TaxHawk - I paid about $45 for my S-Corp return One other thing to consider - since you never actually did business, you might want to formally dissolve the S-Corp to avoid ongoing filing requirements and fees in future years. Otherwise, you'll need to file annual reports with your state and tax returns every year even if the business remains dormant.
Something nobody's mentioned yet - even if you can't beat the standard deduction now, keep track of your potential itemized deductions anyway. My first 3 years as a homeowner I couldn't itemize, but in year 4 I had some major medical expenses plus I replaced my roof and HVAC. That one "expensive year" pushed me well over the standard deduction threshold. If I hadn't been tracking things all along, I would have missed out.
Does the IRS ever question large jumps in deductions from one year to the next? I'm worried if I suddenly itemize after years of standard deduction it might trigger an audit.
A significant change in deduction strategy alone isn't typically what triggers IRS scrutiny. What matters is that you have proper documentation for everything you're claiming. The IRS understands that life events happen - medical issues, home repairs, major purchases - that can cause a one-year spike in deductions. Just make sure you keep receipts for any large purchases, medical bills, property tax statements, mortgage interest statements, and donation receipts. If you have the documentation to back up your claims, you shouldn't worry about itemizing when it benefits you.
Here's a tip that worked for me: If you know you're making a major purchase (car, boat, home renovation), try to time multiple big purchases in the same tax year when possible. I "bunched" my new car purchase and home renovations in the same year, which pushed me over the standard deduction. Then I took the standard deduction the following year. Alternating years can maximize your tax savings.
Brewery owner here! We went with an LLC taxed as an S-Corp (1120-S) and it's been great for our situation. The self-employment tax savings are substantial. One thing to consider - with craft breweries, equipment depreciation is a big deal tax-wise. The other advantage to S-Corp status is that it looks more established to distributors and larger retailers. We found this helped when trying to get our beers into larger chains and regional distribution networks. Make sure whatever you decide, you have solid operating agreements that clearly outline capital contributions, profit distributions, and decision-making authority. The tax form is just one part - the legal structure between partners is equally important.
That's super helpful context from someone in the same industry! Can I ask how you handled the reasonable salary requirement for S-corps? I've heard the IRS scrutinizes brewery owners who take too little salary to avoid payroll taxes.
Great question! For breweries, this is indeed tricky. We looked at what comparable positions would earn in our area (head brewer, operations manager, etc.) and set salaries accordingly. For the first two years, our salaries were about 50-60% of our total compensation, with the rest as distributions. The IRS does look closely at this industry, so we documented our salary-setting process carefully. We also made sure our salaries increased as the business grew more profitable. Having documentation that shows your salary determination wasn't arbitrary is key if you ever get questioned. Our accountant had us keep notes from our meetings where we discussed compensation and market rates.
Don't forget to consider state-specific implications too! Some states treat these entities differently. For example, California has that annoying $800 minimum franchise tax for LLCs and S-Corps, plus an LLC fee based on gross receipts that can get pricey for breweries with high-volume/low-margin products.
Lourdes Fox
Another option is to open your own bank account if possible. Some banks offer teen accounts that your parents don't have access to. Then you can have your refund direct deposited there. If your dad is filing your taxes for you, make sure you see the final return before it's submitted and verify your refund is going to YOUR account, not his. If he's e-filing, you should be able to see where the refund is being directed.
0 coins
Daniel White
ā¢Can I even open my own bank account at 17 though? I thought you had to be 18 to do that without a parent.
0 coins
Lourdes Fox
ā¢Most major banks offer teen checking accounts starting around age 13-16, but they typically require a parent as a co-owner until you're 18. However, some credit unions and online banks have better options for minors with more privacy. Even with a joint account, your dad would technically be violating the account agreement if he took money that was clearly yours (like a tax refund) for his own use. You could also consider asking another trusted adult (like an aunt, uncle, or grandparent) to help you open an account instead of your dad.
0 coins
Bruno Simmons
I had this exact situation when I was 16! My dad tried to claim my $700 refund and I ended up filing my own taxes (super easy with free tax software) and getting the money sent to my aunt's address as a paper check. My dad was LIVID but couldn't do anything about it. Just make sure you file BEFORE your dad tries to claim your income on his taxes. If he's already filed and included your income incorrectly, it gets more complicated.
0 coins
Aileen Rodriguez
ā¢What tax software did you use? I'm in the same situation and need something simple.
0 coins