Amending for SE taxes on wages from 1120S
Total Views: 43
Taxpayer is classified as 1120S, and paid himself wages. No withholdings, no W-2, all wages were included as business profit and taxes paid accordingly on 1040. How do I break out wages for SE income correctly and on what lines on 1040 do I show
Solved!
Helpful Answer
Just because the prior tax preparer prepared things wrong doesn't mean that you should continue down that path. A good defense against preparer penalties isn't "I just did it like the prior preparer".
Answer
You aren't going to like the answer ---------------- you need to go back and prepare a W-2 and quarterly 941s.
Answer
I agree with IRMN. The taxpayer should have been paid as an employee and therefore you need to prepare W-2, pay 941 and state taxes and then amend the 1120S before you can correctly prepare the 1040.
Solved!
Just because the prior tax preparer prepared things wrong doesn't mean that you should continue down that path. A good defense against preparer penalties isn't "I just did it like the prior preparer".
Answer
IRS is quite clear that S-Corp Officer is an employee
Comment
Why can I not show officer compensation from S corp on line 21 other income 1040 and on line 2 Section A Sch SE and be done...he has done this for several years with another tax preparer, so I am just getting in on the tail end.