One thing I'd add to all the great advice here - make sure you're tracking your "basis" in the S Corp properly. When you leave profits in the business like that $135k, it increases your basis in the company. This becomes important later if you ever take out more than the accumulated earnings or if you sell the business. Your basis starts with what you initially invested in the company, then increases with your share of profits (even if left in the business) and decreases with distributions you actually take. Keeping good records of this will save you headaches down the road, especially if you ever need to take large distributions or loans from the company. Most people don't think about basis tracking until they need it, but it's much easier to maintain these records as you go rather than trying to reconstruct them years later.

One more consideration that might be relevant - if you're planning to keep that $135k in the business for a while, make sure you're at least earning some interest on it. Since you'll be paying taxes on those profits this year regardless, you might as well put that money to work in a high-yield business savings account or short-term CDs. Also, don't forget that keeping cash reserves in the business can actually be smart for cash flow management and unexpected expenses. Just make sure your "reasonable salary" is truly reasonable for your industry and role - the IRS scrutinizes S Corps where owners take very low salaries but leave large amounts as retained earnings, since it can look like you're trying to avoid payroll taxes. The good news is that S Corp taxation is generally more straightforward than people think once you understand the pass-through concept. You're essentially paying individual tax rates on business profits, but you get to avoid the double taxation that C Corps face.

Just wanted to add that I tried a similar strategy a few years ago with a BVI corporation for my trading activity. Ended up paying over $45,000 in penalties and back taxes when I got flagged for audit. The IRS agent told me they specifically look for US traders trying to route activities through Caribbean tax havens.

I've been researching similar offshore strategies for my trading business and I have to echo what others have said - the risks far outweigh any potential benefits. The IRS has really cracked down on these structures over the past decade. What changed my perspective was learning about the "economic substance doctrine" - even if you technically follow all the rules for setting up an offshore entity, the IRS can still challenge it if there's no legitimate business purpose beyond tax avoidance. For day trading, it's really hard to establish genuine economic substance in the Cayman Islands when you're sitting at your computer in the US making all the trades. I ended up working with a tax professional who specialized in trader tax status and found legitimate domestic strategies that actually reduced my tax burden more than I expected. Things like proper entity selection, maximizing business expense deductions, and qualifying for trader tax status can make a significant difference without the compliance nightmare and legal risks of offshore structures. The reporting requirements alone for foreign entities would probably cost you more in professional fees than you'd save in taxes, not to mention the constant worry about whether you're crossing the line into evasion territory.

As someone who used to work in tax preparation, here's a simple workaround: complete Schedule C and Schedule 1 in Free Fillable Forms, then print them to PDF. Use a PDF editor to add text showing the correct amount on Schedule 1 where the Schedule C income should be. Then upload the edited PDF back to Free Fillable Forms as an attachment.

I had the exact same Schedule C transfer issue last year and ended up calling the IRS directly about it. The agent told me that when Free Fillable Forms has these transfer errors, the safest approach is to file with the error and then immediately send an amended return (Form 1040X) with the correct amounts. It sounds counterintuitive, but she explained that this creates a clear paper trail showing you're aware of the discrepancy and are correcting it properly. The amended return process is designed to handle exactly these kinds of situations where software glitches cause filing errors. Since you're overseas, you can file the 1040X electronically through the same Free Fillable Forms system once your original return is accepted. Just make sure to clearly explain in the amendment that this is correcting a software transfer error from the original filing. The $130 amount is small enough that it's unlikely to cause any red flags, but having the proper documentation trail protects you if there are ever any questions down the line.

I'm in the exact same situation - my CA refund has been stuck at "issued" for 19 days now and it's incredibly frustrating! Filed in mid-March, got the notification it was issued on April 1st, but nothing has hit my account despite their 10 business day promise. Like many others here, my federal refund came through in just 4 days, so I know my banking info is correct. I've tried calling FTB probably 20+ times but never get past that "high call volume" recording - their phone system seems designed to prevent anyone from actually getting help. What really bothers me is seeing the complete inconsistency - some people get their refunds in under a week while others wait a month+ with zero explanation. It's clear there are major systemic issues at CA FTB that they're not being transparent about. I'm going to try that buried chat option on their website that someone mentioned, and maybe look into those callback services since the regular phone system is completely useless. It's ridiculous that we might have to pay third parties just to get basic information about our own money. Thanks for starting this thread OP - it's somewhat comforting to know this is such a widespread issue, even though it sucks that so many of us are stuck in this nightmare together. Hopefully CA FTB gets their act together soon!

I'm going through this exact same nightmare! My CA refund has been stuck at "issued" for 16 days now and I'm starting to lose my mind. Filed in mid-March, got the "issued" notification on April 3rd, and absolutely nothing in my account since then. What's really getting to me is that I can't get any real information about what's happening. I've called FTB probably 15 times at different hours and it's always the same "high call volume" recording before they disconnect. Meanwhile my federal refund hit my account in 5 days, so I know my banking details are correct. The inconsistency is what's driving me crazy - seeing some people get theirs in under a week while others wait a month+ with identical "issued" status. There's clearly something majorly broken in their system that they're not being honest about. I'm going to try that chat option someone mentioned since the phone system is completely useless. Really shouldn't have to jump through hoops just to get basic info about our own money! Thanks for posting this OP - at least now I know I'm not going insane and this really is a widespread CA FTB problem.

Just wanted to add some perspective as someone who went through this exact situation a few years ago. The good news is yes, you can absolutely max out both your SIMPLE IRA and Roth IRA - they're completely separate contribution buckets. One thing I wish someone had told me earlier: don't forget about the timing of your contributions! While you have until the tax deadline to contribute to your Roth IRA, your SIMPLE IRA contributions need to come out of payroll during the actual tax year. So if you want to max out your SIMPLE IRA for 2025, you need to adjust your payroll deductions now to spread that $15,500 across your remaining paychecks. Also, since you mentioned feeling behind on retirement savings at 43, you might want to start planning for catch-up contributions. Once you hit 50, you can contribute an additional $3,500 to your SIMPLE IRA and $1,000 to your Roth IRA. That's an extra $4,500 per year you can sock away! The dual employer/employee role can be confusing, but it's actually an advantage - you get to contribute as an employee AND give yourself the employer match. Just make sure you're giving all your employees the same match percentage you give yourself.

Great question! I'm actually a CPA who works with a lot of small business owners in similar situations. The short answer is YES - you can absolutely max out both your SIMPLE IRA ($15,500 for 2025) and your Roth IRA ($7,000 for 2025) as long as you meet the income requirements for the Roth. The key thing to understand is that these are completely separate contribution limits. Your SIMPLE IRA is an employer-sponsored plan, while your Roth IRA is an individual retirement account. Being the business owner doesn't change your ability to contribute to both - you're still treated as an employee for SIMPLE IRA purposes. A few important points to keep in mind: - Make sure your income falls within the Roth IRA phase-out limits ($146,000-$161,000 for single filers in 2025) - Don't forget you also need to provide yourself the same 3% employer match you give your employees - At 43, you're actually not that far behind - you still have 22+ years until full retirement age to build your savings Since you mentioned feeling behind on retirement savings, maxing out both accounts would put away $22,500 this year (plus your employer match), which is a solid foundation to build on. You're asking the right questions and taking the right steps!