I'd like to claim a credit on our S-Corp return, and I've filled out the form for a tax credit of $5000.
To confirm, can this credit be used for an officer/shareholder who is also an employee? I read through the IRS' detailed FAQs regarding this credit and didn't see anything about an officer employee not being eligible.
However, right now that results in line 8 on 1120s being negative (the amount of the credit); is that ok?
When I do an Error Check in TurboTax, it seems to want me to list wages under A in the Worksheet, even though it's already under Compensation of Officers (item 7). However, if I put the wages there, it incorrectly doubles the wages Deduction for the Return by also counting the same officer compensation as item 7.
But TT doesn't like it if I leave it blank: it says "Total Employment Credits to Line 8 must be less than or equal to zero"...
