Is ordinary business income from S-Corp subject to additional medicare tax?

[Michael16]

Is ordinary business income from an S-Corp (i.e., form 1120-S, line 22) subject to the additional social security tax from form 8959 or only W-2 wages paid by the S-Corp and reported on the individual's 1040?

[Anonymous_ · Accepted solution]

Only income you earn as an employee of the corporation is subject to FICA.

See https://www.irs.gov/taxtopics/tc751

Ordinary business income reported on Line 1 of your K-1 (1120-S) is not subject to FICA.

Note that you need to pay yourself a reasonable salary for services you perform for the corporation.