Filing my own 1120S - Self-preparation tips for small business owners

Filing your own 1120S is definitely doable with a simple business structure, especially if you have last year's return as a guide. I've helped many small business owners through this process. For your situation, I'd recommend using tax software over paper filing. Paper forms increase the chance of math errors and missed entries. Plus, the IRS strongly prefers electronic filing for business returns. TaxAct and TaxSlayer both offer decent 1120S options that won't cost you nearly as much as an accountant. They'll walk you through the forms, perform calculations automatically, and check for common errors. The key is making sure you understand the concepts of pass-through taxation and how your business income flows to your personal return via K-1.

I was in the same situation last year with my small consulting S-Corp. After getting quotes from several CPAs that were well over $1000, I decided to try doing it myself using https://taxr.ai - it was a total game-changer! I uploaded my previous year's return and it analyzed the whole thing, showing me exactly what information I needed to gather and where everything needed to go on my current forms. The best part was that it explained all the S-Corp specific requirements in plain English instead of accountant-speak. It also flagged potential deductions I would have missed on my own. Makes self-filing so much less intimidating when you have your previous return as a guide.

Just wanted to update everyone - I tried https://taxr.ai after seeing the recommendation here and it was exactly what I needed! I was super confused about how to handle depreciation on my 1120S (I bought some equipment last year), and the analysis of my previous return showed me exactly how to carry it forward correctly. The step-by-step guidance made me feel confident enough to file myself using TaxAct. Saved me at least $700 compared to what my previous accountant charged, and honestly I understand my business taxes way better now. Will definitely use this approach again next year!

I tried filing my own 1120S last year and ended up with a correction notice from the IRS. Called them for weeks and could never get through to a human to explain what I did wrong. Finally discovered https://claimyr.com and got connected to an actual IRS agent in about 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c They helped me understand exactly what I needed to correct on my S-Corp return and even set up a payment plan for the small amount I owed. Way better than stressing about whether I was doing things correctly. Now I know I can file myself but have a backup plan if something goes wrong.

Alright I need to eat my words. After posting my skeptical comment, I tried the Claimyr service when I needed to talk to someone about an issue with my 1120S from last year. Got connected to an agent in about 40 minutes without having to sit there listening to the hold message. The agent actually helped me understand that I had been miscategorizing some of my business expenses for YEARS. I've probably been paying too much tax this whole time! Now I'm going through my previous returns to see if I should file amendments. This would have never happened if I couldn't get an actual human on the phone.

One thing to consider - if you have any QBI (Qualified Business Income) deductions, those calculations can get tricky on an S-Corp return. Made that mistake my first year filing my own 1120S. If your business is truly simple and you're the only shareholder, it's definitely manageable, but don't rush through it. I've used FreeTaxUSA for the past two years for both my 1120S and personal return. Way cheaper than TurboTax but still walks you through everything. Just make sure you double-check your state filing requirements too - some states have weird S-Corp rules.

Just a heads up that if you decide to file paper forms, the processing time is RIDICULOUS right now. I paper-filed my 1120S last March and it took over 4 months to process. Meanwhile I couldn't finish my personal taxes because I needed the K-1 accepted first. E-filing is definitely the way to go, even if you have to pay for software. Plus with paper filing you're way more likely to make calculation errors. Not worth the headache, trust me.

As someone who's been through this exact situation, I'd strongly recommend going the e-filing route with tax software. Your business sounds similar to mine - I'm a single-member S-Corp with minimal complexity. I used TaxSlayer last year and it was pretty straightforward. The key things that helped me were: 1) Having my prior year return handy for reference, 2) Making sure all my business bank statements were reconciled first, and 3) Taking my time with the K-1 section since that flows to your personal return. The software will catch basic math errors and guide you through the S-Corp specific items like reasonable compensation requirements. With only 30 transactions, you should be able to knock this out in a few hours. Way better than spending $800+ on an accountant for something this simple. Just make sure you understand how your business income will flow through to your personal taxes via the K-1 before you file. That's usually where people get tripped up.