A partner and I are 50% partners in an S-Corp.
What tax form should the S-Corp issue its owners to input in their personal returns?
I may have done it incorrectly, but Turbotax Business spit out a K1 form to both partners. There was a field for "W-2 Wages" in the K1, but even after entering the K1 information, it didn't change the amount of tax that I owed.
I tried typing in a W2 form and even issuing myself a W-2, and it adjusted it correctly.
However, I didn't withhold anything all year with the understanding that it would be owed with a penalty when I filed my taxes and I'm fine with that.
After discussing with a tax professional, he said I shouldn't be issuing myself a W2, and that the K1 information should have been enough for Turbotax to figure it out.
He said if I issue a W-2 then I would owe Social Security and Medicare taxes, plus interest, plus penalties if I issued myself a W-2 without withholding, but I thought I had to do that anyways?
So did I do it incorrectly, or do I need to issue myself a W-2 or a 1099 kind of form?
