Florida requires C corporations that are doing business in Florida to file Form F-1120 (Florida Corporate Income Tax Return) regardless of whether they have any tax liability. Even if your corporation falls below the income threshold where you'd owe tax, you typically still need to file the return. There is an exception for corporations not doing business in Florida and corporations that have no income reportable to Florida. So it depends on where your C corporation is operating and generating income. Florida does have filing exemptions for certain entities like S corporations and certain non-profits, but standard C corporations generally need to file.

Thanks for this insight! Quick question - do student loans factor into this calculation at all? My daughter has both scholarships and loans.

Student loans don't impact the taxability of scholarships. Loans are simply money you have to pay back, so they're not considered income. The calculation only looks at: 1) How much in qualified education expenses did you have? and 2) How much in scholarships/grants (money you don't have to repay) did you receive? If #2 is larger than #1, the difference is taxable income. Loans are completely separate from this calculation. However, you may be eligible for the student loan interest deduction for interest paid on those loans, which is a different tax benefit entirely.

How did they even catch such a small amount? Was it just random bad luck that you got audited or do they actually check everyone's forms that carefully?

I'm definitely going to contact the site coordinator. Should I specifically mention which volunteers made the mistakes, or just explain the situation generally? And is there any chance this could get me in trouble since I signed it even though the information was wrong?

It's helpful to mention specifically which volunteers made the mistakes so the coordinator can address the training issues, but don't worry about getting yourself in trouble. The IRS understands that taxpayers rely on preparers' expertise, especially in VITA programs. You're taking the proper steps to correct the return, which shows good faith on your part. Remember that VITA volunteers are trained specifically not to create forms or enter information they don't have documentation for. The site coordinator needs to know this happened so they can make sure those volunteers receive additional training or supervision. This protects future taxpayers from experiencing the same issues.

I've used both VITA and TurboTax Free. Honestly, for basic student returns, the free software is pretty foolproof. It asks straightforward questions about your education expenses and walks you through everything. Plus, you can save your work and think about it or do research before submitting.

Does H&R Block handle the capital gains calculation correctly? My situation is complicated because some of my RSUs vested early in the year and then I sold them months later when the price had changed quite a bit. I need to make sure I'm reporting both the initial income and the capital gains/losses correctly.

Yes, H&R Block handles the capital gains calculation correctly. It separates the initial income recognition (which appears on your W-2) from any subsequent capital gains or losses that occur between vesting and selling. When you enter your stock sales, you'll provide both the sale price and the cost basis (which is the fair market value on the vesting date). The software then correctly calculates only the difference as capital gains/losses. It's much more straightforward than TurboTax, especially for situations where there's a significant time gap between vesting and selling with price changes.

Form 3922 is for ESPP (Employee Stock Purchase Plans), not RSUs. For RSUs, employers typically provide a summary statement but not a specific IRS form. Most just include it on your W-2 and provide supplemental information.

Thanks for this clarification! So if I understand correctly: I should definitely file Schedule C with my business expenses to reduce my self-employment tax, but that's completely separate from deciding between itemized vs. standard deduction? And since my total income is only around $32,500, the standard deduction ($13,850) is probably better unless I have some major itemized deductions?

Yes, that's exactly right! File Schedule C to report your 1099 income and expenses (which reduces or eliminates self-employment tax on that income). And yes, at your income level, you'll almost certainly want to take the standard deduction unless you have extraordinary itemized deductions like major medical expenses, huge charitable contributions, or large mortgage interest payments. For most people in your situation, itemized deductions don't exceed the $13,850 standard deduction.

Just be careful with the home office deduction - it has to be a space EXCLUSIVELY used for business. If you sometimes use that desk/room for anything personal, it doesn't qualify. I got audited over this once.