I'm using Turbotax Business and have finished my S-Corporation Taxes. I'm getting a notification that we have "Your Tax Refund" for overpayment and asks if I want to elect direct deposit of the corporation tax refund? Depositing the funds into the corporation bank account you designate. I'm so confused since I thought that S-corporations were tax at the shareholder level and refund would also go to the shareholder level / K-1's?
Generally an S-Corp does not pay income taxes but if you look at page 1 lines 22 and 23 there can be taxes owed or credits refunded. so something is appearing on those lines that may or may not be proper. we would need to know the line number(s) to assist you.
however, if there is an amount only on one of these lines you likely entered something in the wrong spot
24a, b or d
Thanks for your response.
Line 22 has a significant Ordinary business loss so a negative number.
So I get that there will be a refund but why is Turbotax suggesting that the company receive it vs. pushing it down to the K-1's?
Line 24a has the entire amount that the company sent in for estimated tax payments throughout 2023 including all the SS, Medicare and Tax withholding that was taken out of the paychecks for the two officers / shareholders.
And why would suggest that the refund is the entire amount sent in for estimated tax payments - I didn't think that the SS & Medicare were refundable?
Figured it out - Thank you! Realized that I had incorrectly submitted the payroll taxes that we had paid throughout the year as "corporate" taxes.