Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Jan 7, 2021 8:49:21 PM

What reasonable salary should a S corp give? eg scenario- total = 300K: line of work = IT consultant. Is it based on percentage of S corp business income.

Reasonable salary for S corp employee

0 1 238
1 Replies
Level 15
Jan 7, 2021 10:45:28 PM

there are no bright-line rules for what is reasonable.   in fact what's reasonable in Maine is different than in California based on Tax Court rulings.    consult a pro who can give you guidance.  by the way, it's too late if you needed to take a salary for 2020.