Family Paid Leave Tax Credit for S-Corp Shareholder Employees

[alohaTy]

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"...

[alohaTy]

I've clarified/updated my question (again). Any help here?

[ThomasM125]

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.

[alohaTy]

Ok, great.

That being said, TurboTax is still saying there is an error, per my original post. I guess I will ignore it...?

[alohaTy]

Just discovering it won't let me e-file with the error. Help! 

[Digger109]

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...