@Jennifer_DoorPRO wrote:
My husband and I are the sole owners. We are not employees. We pay ourselves through draws and not payroll.
Shareholders who perform services for the corporation are generally considered employees and are required to take a reasonable salary in exchange for the services rendered.
See https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-a...
In your scenario, you would need two TurboTax products to prepare your income tax returns; TurboTax Business (which must be installed and run in a Windows environment on a computer) for the S corporation (Form 1120-S) and a personal income tax return preparation product (for example, TurboTax Premier) for your individual (presumably joint) income tax return (e.g., Form 1040).
I would strongly urge you to use a tax professional for both tax guidance and return preparation and revisit your status as S corporation shareholders with your accountant.
