I agree that I should have said line 7 of Form 1120S instead of line 8 since the individual is an officer of the company, but I still think that correct amount is $30,000, with $30,000 going on line 17. I believe that TurboTax instructs that the total of lines 7 and 8 should agree with the total reported on line 2 of Form 941 (which is the total of box 1 amounts from all Forms W-2).
The instructions for lines 7 and 8 of Form 1120S say:
"Don't include salaries and wages reported elsewhere on the return, such as amounts included in cost of goods sold,
elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."
However, there is some ambiguity here since it does not say that the elective deferrals of officers *must* be shown on line 17 rather than on line 7 or 8, but I think they should be. If Form 1125-E is required, The $18,000 of elective deferral would be included on Form 1125-E line 3 to produce $30,000 on line 4 to transfer to Form 1120S line 7. The instructions for Form 1125-E line 3 say:
"Enter compensation of officers deductible elsewhere on the return, such as amounts included in cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."
Pension, Profit-Sharing, etc., Plans is line 17 of Form 1120S, not line 18. Line 18 is for fringe benefits paid to employees owning 2% or less of the company.
