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New Member
posted Jun 4, 2019 12:13:06 PM

My husband & I have LLC -S corp.We are coowners & officers.I entered our salary info in shareholder(>2% owner). Do we enter our salary in officers' compensation again?

My husband & I have LLC -S corp.We are co-owners & officers. We use turbotax business product. I entered our salary info in shareholder(>2% owner). Next is officers' compensation summary section. Do we have to enter our salary in officers' compensation again? or it's overlap? 

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New Member
Jun 4, 2019 12:13:11 PM

No, please do not enter your salaries in both sections; they will be counted twice.

As you can imaging, an S Corp may have officer-employees who are not >2% owners, and may have compensated >2% owners who are not officers, so both scenarios must be made available. In your case, you have made the best choice, entering your compensation and your husband's in the >2% owner section, as that both accounts for the salary and provides the better disclosure of your roles in the S Corp.

2 Replies
New Member
Jun 4, 2019 12:13:11 PM

No, please do not enter your salaries in both sections; they will be counted twice.

As you can imaging, an S Corp may have officer-employees who are not >2% owners, and may have compensated >2% owners who are not officers, so both scenarios must be made available. In your case, you have made the best choice, entering your compensation and your husband's in the >2% owner section, as that both accounts for the salary and provides the better disclosure of your roles in the S Corp.

New Member
Jun 4, 2019 12:13:14 PM

Thank you!