topic Is there a difference in self employment and S-corp filing in Business & farm

Is there a difference in self employment and S-corp filing

dipstax2018 — Mon, 05 Aug 2019 18:01:39 GMT

Re: Is there a difference in self employment and S-corp filing

Rainman12 — Mon, 05 Aug 2019 21:37:23 GMT

BIG difference! Solo self-employment, you just add Schedule C to your 1040 return. S-Corp, the Corporation first files a 1120-S with IRS, and issues you a Schedule K-1 which you include with your 1040 return. You can Not create an 1120 with the TurboTax software used for 1040 returns; additional Business program required ...

Re: Is there a difference in self employment and S-corp filing

Rick19744 — Tue, 06 Aug 2019 14:09:48 GMT

In addition to @Rainman12 comments, as a schedule C all the earnings are subject to SE tax.

With an S corporation, only your wages are subject to SE tax (technically FICA) (half paid by you and half paid by the S corp) Any flow-through income is not subject to SE tax.

This is a hot button for the IRS so make sure you consult with a tax professional to understand all the tax implications of either entity option.