Solved: Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?
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Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?

Filing as S Corp, the program adds what I entered as payroll from the w-2 and adds compensation of officers and shows that total as payroll from w-2s. Won't that trigger a problem because it won't match what the IRS has received?
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Employee Tax Expert

Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?

This is correct reporting.  That figure is necessary for the new QBI deduction.  It will not raise the amount of taxable income each of the shareholders receives.  Rather, the distributive share of those wages can assist with the complicated Section 199A deduction, especially if the shareholder's income is above the phaseout threshold of $157,500 of taxable income if Single, Married Filing Separate or a Head of Household, and $315,000 if a Qualifying Widower or Married Filing Joint.  The larger the number in Box 17 with a code W, the better it will go for the shareholders with that level of income.  

This FAQ explains in more detail  (click on the View the entire answer, and then the embedded link  How is the deduction calculated? (Not for the faint of heart!):  https://ttlc.intuit.com/replies/7019998 

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Employee Tax Expert

Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?

Where specifically are you seeing that being reported?
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New Member

Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?

Form 1120S 17W  "Section 199A W-2 wages"
New Member

Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?

Thanks. I'll go with that.
Employee Tax Expert

Filing as S Corp, turbotax adds my payroll from w-2s and adds officers compensation,shows that total as payroll from w-2s. Is it a problem from not matching the IRS info?

This is correct reporting.  That figure is necessary for the new QBI deduction.  It will not raise the amount of taxable income each of the shareholders receives.  Rather, the distributive share of those wages can assist with the complicated Section 199A deduction, especially if the shareholder's income is above the phaseout threshold of $157,500 of taxable income if Single, Married Filing Separate or a Head of Household, and $315,000 if a Qualifying Widower or Married Filing Joint.  The larger the number in Box 17 with a code W, the better it will go for the shareholders with that level of income.  

This FAQ explains in more detail  (click on the View the entire answer, and then the embedded link  How is the deduction calculated? (Not for the faint of heart!):  https://ttlc.intuit.com/replies/7019998 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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