I'd like to claim a credit on our S-Corp return, and I've filled out the form for a tax credit of $5000.
To confirm, can this credit be used for an officer/shareholder who is also an employee? I read through the IRS' detailed FAQs regarding this credit and didn't see anything about an officer employee not being eligible.
However, right now that results in line 8 on 1120s being negative (the amount of the credit); is that ok?
When I do an Error Check in TurboTax, it seems to want me to list wages under A in the Worksheet, even though it's already under Compensation of Officers (item 7). However, if I put the wages there, it incorrectly doubles the wages Deduction for the Return by also counting the same officer compensation as item 7.
But TT doesn't like it if I leave it blank: it says "Total Employment Credits to Line 8 must be less than or equal to zero"...
The paid family leave credit would show on form 8994, line 3. It should flow over to schedule K, which is on page 3 of an S corporation return 1120-S, on line 13(f).
The credit would be allowed for an officer, but that officer would have to have wages listed on line 7 of form 1120-S, page one of the S corporation tax return.
Ok, great.
That being said, TurboTax is still saying there is an error, per my original post. I guess I will ignore it...?
Just discovering it won't let me e-file with the error. Help!
Thanks for the information wrt the eligibility of an officer wrt this credit.
The OP had a specific question about form data entry which has remained unanswered, however.
FWIW, I had the same form-related problem as did the OP (indeed, we do not have any non-officer employees). What I did was manually subtract the Line 8 credit amount from the Line 7 "Compensation of officers" amount.
IHTHS! Please pipe in if my "guidance" is not good practice...