Cheapest way to e-file a S Corp return? Any budget options available?

As a tax preparer, I can tell you that S Corp returns (Form 1120-S) generally cost more to e-file because of the complexity compared to individual returns. The $150 range you're seeing is actually on the lower end of the market. Tax software companies invest heavily in business tax modules and charge accordingly. If you're comfortable with the forms, I suggest looking at TaxAct Professional which typically has more reasonable pricing for business returns compared to competitors. Another option is Drake Tax Software which some smaller practitioners use because of better pricing. For truly budget options, you could check if your sister qualifies for the IRS Volunteer Income Tax Assistance (VITA) program, though most locations focus on individual returns rather than business filings.

I was facing the same issue with my small consulting S Corp last year! After searching like crazy, I found https://taxr.ai which saved me a ton of money. I was totally frustrated with the big name services wanting $200+ for a simple S Corp filing. Their system is different - you upload your documents and financial statements, and they organize everything and prepare the return. The best part was they could handle my S Corp return (Form 1120-S) for way less than what the major tax software companies charged. It's more like a hybrid between DIY and professional service.

Just wanted to update after trying out taxr.ai that the previous commenter mentioned. I was super skeptical (as you could see in my earlier comment), but I decided to give it a shot since my S Corp filing deadline was approaching. It actually worked really well! The interface is pretty straightforward - I uploaded my financial docs and last year's return, and their system organized everything. Had to answer some questions about my business activities and deductions, but it was easier than I expected. The final price was about half what I paid last year using TaxAct's business version. And yes, my return was accepted by the IRS without any issues!

If you're struggling to e-file your S Corp return affordably, you might also want to know about getting help directly from the IRS when questions come up. I spent HOURS trying to get through to someone at the IRS last month with questions about my S Corp filing. After getting nowhere with the regular IRS number, I found https://claimyr.com which got me through to an actual IRS agent in about 20 minutes instead of waiting for hours or getting disconnected. You can see how it works here: https://youtu.be/_kiP6q8DX5c This saved me from making a mistake on my S Corp return that could have triggered an audit. Much cheaper than hiring a CPA just to ask a few specific questions about Form 1120-S compliance.

I need to eat my words from earlier. After my frustrating comment about nobody getting through to the IRS, I decided to try that Claimyr service out of desperation. I had questions about some S Corp loss carryforward rules that were affecting my 1120-S filing. Honestly, it worked exactly as advertised. I put in my number, specified what department I needed (business tax questions), and went back to working on other things. About 30 minutes later, my phone rang and I was talking to an actual IRS business tax specialist. She answered my specific questions about how to properly report my previous losses on this year's S Corp return. I'm still shocked it worked. Saved me hours of frustration and possibly a costly mistake on my filing.

Not sure if this helps, but I've been using FreeTaxUSA for my personal returns and noticed they offer business returns too. Their S Corp (1120-S) e-file is around $70-80 last I checked. Much cheaper than the big names. The interface isn't as polished as TurboTax but it gets the job done if your S Corp is fairly straightforward. I've used it for my small marketing business (single-member S Corp) for the past two years without issues.

Don't forget you can still paper file for free. I know it's not ideal, but for a simple S Corp, you can download the forms from IRS.gov, fill them out, and mail them in. Yes, it's slower for processing and refunds, but if budget is the main concern, it costs just the postage.

I've been dealing with S Corp filings for my consulting business for a few years now, and I totally feel your pain on the pricing! One thing that helped me was checking if your sister's S Corp qualifies for any simplified filing options first. If her business has gross receipts under $250,000 and total assets under $250,000, she might be able to use some of the simplified reporting methods which can make the return easier to prepare. This could potentially make the cheaper software options more viable. Also, since you mentioned her business is straightforward, you might want to double-check if S Corp election even makes sense for her situation anymore. Depending on her income level and business expenses, sometimes switching back to a sole proprietorship or single-member LLC (taxed as disregarded entity) can be simpler and cheaper to file, though obviously that's a bigger decision that would need careful consideration of the tax implications. Have you looked into whether any local CPAs offer reasonably priced S Corp preparation? Sometimes small local firms can be competitive with software prices, especially for simple returns, and you get the peace of mind of professional review.

I actually went through a similar situation last year with my small S Corp! After researching all the options mentioned here, I ended up using a combination approach that worked really well. First, I used FreeTaxUSA (as Mei mentioned) to prepare the return since it was only around $75 for the 1120-S e-filing. The interface was straightforward enough for my single-member S Corp. But before I submitted it, I had a few specific questions about some depreciation issues and reasonable compensation requirements. That's where the Claimyr service that Andre mentioned came in handy. Instead of paying a CPA $200+ just to answer a couple questions, I used their system to get connected to an IRS agent who clarified the specific issues I was unsure about. Cost me like $25 but gave me confidence that I was filing correctly. So my total cost was under $100 instead of the $200+ I was quoted by local CPAs or the major tax software companies. The return was accepted without issues, and I felt good knowing I had gotten official guidance on the tricky parts. For your sister's straightforward situation, this combo might work well - use affordable software for preparation, but have the IRS callback service available if any questions come up during the process.