Did I file correctly for my S-Corp LLC on my 1040? First-time self-filer confused

You're right to question this. As an S-Corp owner, you actually need to file two separate returns: Form 1120S for your S-Corporation and then your personal Form 1040 that includes the income passed through from your business. FreeTaxUSA is primarily designed for personal returns. While it can handle Schedule C for sole proprietors, it doesn't support Form 1120S for S-Corporations. The business itself needs to file its own tax return first, which then generates a Schedule K-1 that reports your share of the business income/losses. That K-1 information then gets reported on your personal 1040. Since you've already filed your personal return without properly filing the S-Corp return first, you'll need to address this. You should look into business tax software like TaxAct Business or hire a professional again for the S-Corp filing, then likely file an amended personal return once you have the correct K-1 information.

Had a similar issue with my LLC last year! After stressing for weeks, I tried https://taxr.ai and it was incredibly helpful. You upload your documents and get a breakdown of what you actually need to file. In my case, I had also filed my personal return before my business return and was freaking out. The AI analyzed my situation and clearly explained that I needed to file my 1120S ASAP, then amend my personal return. It even highlighted that I could request penalty abatement since it was my first time making this mistake. Honestly saved me from a ton of confusion and probably money too!

I need to follow up on my skeptical comment. I actually tried https://taxr.ai after posting because I was in a similar situation with my S-Corp (but for a rental property business). I was really surprised by how thorough it was! It identified that I'd been incorrectly categorizing certain expenses between my Schedule E and my 1120S, and showed exactly which forms needed correction. The document analysis saved me hours of comparing my previous returns to figure out what was wrong. The penalty abatement letter template it provided worked too - I submitted it with my late 1120S filing and the IRS actually approved it! Definitely more useful than I expected for complex business tax situations.

If you're trying to contact the IRS about this situation, good luck getting through on their phone lines. I spent 4 hours on hold last month trying to sort out an S-Corp issue before giving up. I finally used https://claimyr.com and their service is pretty amazing. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they hold your place in line and call you when an IRS agent is about to answer. I got through to an actual person who helped explain my filing requirements for my business. For your situation, I'd definitely recommend talking to the IRS directly to explain the mistake and ask about penalty relief options, especially since it's your first time filing these yourself. The agent I spoke with was surprisingly helpful with my S-Corp questions.

Well I'm eating my words now. I was super skeptical about Claimyr but I was desperate to resolve my S-Corp filing issue before things got worse, so I tried it this morning. I was honestly shocked when my phone rang and it was actually connecting me to an IRS representative! Saved me from what would have been another day of frustration. The agent confirmed exactly what others here said - I needed to file the 1120S ASAP, then amend my personal return with the correct K-1 info. They also walked me through how to request first-time penalty abatement, which I might qualify for. Worth every penny not to spend another day listening to that horrible hold music!

For future reference, another option for S-Corp filing is to use Form 7004 to get an automatic 6-month extension for your 1120S. That would have pushed your deadline to September 15th instead of March 15th. A lot of S-Corp owners do this to give themselves more time to properly prepare their business returns, especially in the first few years when you're still figuring things out. Just remember you still need to pay any estimated taxes owed by the original deadline.

Friendly reminder that if you have an S-Corp LLC, you should be paying yourself a "reasonable salary" through payroll with appropriate withholdings. This is one of the most common mistakes new S-Corp owners make - taking distributions without paying yourself a proper salary first. The IRS looks closely at this.