Okay, I have the same situation. Have an S-Corporation, am it's sole 100% shareholder and pay myself from it as a 1099 contractor.
If I use your plan of some "wages" (as 1099-Misc) and some "dividends" (1099-DIV), say a 50/50 split, what kind of dividends are those designated as?: Ordinary, Qualified, Capital Gains distribs., Non-dividend distribs., Cash Liquidation, etc., what? (Choices on 1099-DIV form below:)
| 1a- Ordinary dividends | | 1b- Qualified dividends | | | 2a- Capital gain distributions | | 2b- Unrecaptured Section 1250 gain | | | | | | | | | |
|
| 2c- Section 1202 gain | | 2d- Collectibles (28%) gain | | | 3- Nondividend distributions | | 4- Federal income tax withheld | | | 5- Section 199A Dividends | | 6- Investment expenses | | | 7- Foreign tax paid | | 8- Foreign country or US possession | | | 9- Cash liquidation distributions | | Account number (optional) | |
|
I'm a one-man shop, with an occasional contractor (other than me) that I pay with 1099 accounting.
What do each mean?
Which one should I use?
I just want to collect all the income that I received through the corporation each year.
