KristinaK
Employee Tax Expert

Business & farm

You have several options:

 

1) Calculate your reasonable salary and run the payroll for 2019 (filing Forms 94x, W-2, etc.). This will be messy and will mean penalties on late filing and payment of taxes. 

2) You can issue yourself a 1099-MISC, report it on Schedule C of your personal return. This is not an ideal way of doing it. And really not the right way of doing it. 

3) You can consider the payments to yourself as payment of dividends and report them as such. Or return of capital. Read more about it here.  Without the salary, also not an ideal way to go.

 

If you did not pay yourself a compensation through payroll, you will not report anything on the line for "officer compensation". 

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