Hello,
I appreciate your discussion here. I am a little confused, because I am the only officer/individual for an LLC taxed as an S corp. The LLC earned X dollars last year, and transferred Y to my personal account. On my 1120S, I put Y for Compensation of officers. I'm the only officer.
This then generates a K-1, not a W-2.
I then took the K-1 and entered it on my 1040. I notice on statement A, referring to box 17, it has
W-2 Wages: Y(the amount I transferred to myself).
So I entered that in the correct place on my box 17.
The problem is, no matter what amount I put there, it doesn't seem to change my tax refund. This is concerning to me, because even if I double it, it still doesn't change my tax refund.
I am reading that this is because it does not reflect my income, but the total paid.
So how do I make sure it's reflected as income?
The 1120S does not produce a W-2, and I am reading I wouldn't get a W-2 anyway as an officer.
Can you tell me why it wouldn't affect my refund?
