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1120-S: How to enter Salary and taxes of owner

Forum|Forum|2 years ago
March 14, 2024
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I am the sole employee of an S Corporation.

In the Federal 1120s there is line 9 "Salaries and wages" and line 12 "Taxes and licenses".

If as a sole employee I had say $50,000 in salary (W-2 Box 1) of which $7,500 was withheld in taxes (W-2 boxes 2 + 4 + 6) then do I report on the 1120s:

(a) Line 8 (Salaries and wages) $42,500

Line 12 (Taxes and licenses) $7,500 (W-2 lines 2 + 4 + 6)

or

(b) Line 8 (Salaries and wages) $50,000 (W-2 Box 1)

Line 12 (taxes and licenses) $0

Best answer by DavidD66

Neither one. If you are using TurboTax Business, I recommend you enter your Salary and the payroll tax via the step-by-step. Your salary of $50,000 salary goes on line 7 - Compensation of Officers. The taxes withheld from your pay is not an expense, but the payroll taxes that the business paid is an expense. This would include the employer's share of Social Security and Medicare, and federal and state unemployment tax. Those payroll taxes will show up on Line 12 of the 1120-S, but are entered on the Tax and Licenses Worksheet.

D

DavidD66Answer

Neither one. If you are using TurboTax Business, I recommend you enter your Salary and the payroll tax via the step-by-step. Your salary of $50,000 salary goes on line 7 - Compensation of Officers. The taxes withheld from your pay is not an expense, but the payroll taxes that the business paid is an expense. This would include the employer's share of Social Security and Medicare, and federal and state unemployment tax. Those payroll taxes will show up on Line 12 of the 1120-S, but are entered on the Tax and Licenses Worksheet.

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