My wife has a small 1 person business that is taxed as an S-Corp. She receives a set salary.
I do not see where I can put her salary in under the Parents Finances section.
The business income/loss does show on our 1040 joint return(line 17). I do not see where 1120S form information can be entered.
Any direction would be appreciated.
V/R,
Kevin
What is it that you want to enter from the 1120S that didn’t already come through onto the 1040 via her W-2 and K-1? Assets?
The profits and losses show on our 1040. But her salary shows on the 1120S. Taxes were paid monthly for her
salary so does not show on 1040. Guess I am trying to figure how it needs to be entered in the finance section.
I don’t understand how her S-Corp salary isn’t coming through to her on a W-2.
Yes, the rules for s-corps are that shareholders who work for the corporation have to be paid a reasonable salary through a regular payroll process, which would be reported on a W-2, before they take distributions of profits, which would be reported on a Schedule K-1 (Form 1120s).
As an employee of the s-corp, your wife’s salary is considered an expense to the s-corp and would indeed show up as such on the corp’s 1120s return, but that salary is a payment to you wife that should show up on her 1040 return… (via the W-2).
Since the s-corp is a pass through entity, all the profits would also show up on her 1040 (via the K-1) regardless of whether or not she took distributions of those profits.
Thank you both! That was the missing piece. I just need to get the W-2 information. Thanks for the directions.