topic on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution in Business & farm

on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

Vivek13 — Tue, 29 Dec 2020 08:12:54 GMT

I have an S-Corp where i am the only owner and employee. Say as W-2 employee i I earned a taxable wages of $65,000. Me as an employee contributed $19,500 to a 401k. Me as S-Corp owner/employer contributed $16,250(25% of $65,000) to SEP IRA.

Question 1 ) what line item in W2 do I show the employee 401k and employer SEP IRA contribution?

Question 2) what line item in 1120S do i show employee 401k and employer SEP IRA contribution? Also on line item 7 i.e compensation of officer do i show a wage of $65,000 or $84500 ($65000 + $19500 since the 401k is employee contribution)

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

M-MTax — Tue, 29 Dec 2020 16:00:28 GMT

For W2 read the instructions for lines 12 and 14. Enter all of the compensation paid to an employee...which is you....on line 7 except for contributions to your retirement plan which is entered on line 17.

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

Vivek13 — Tue, 29 Dec 2020 17:16:20 GMT

Thanks for the response. Ok on 12D I have employee 401k contribution of $19500. So where does the Employer SEP IRA contribution of $16,250 go on the W2?

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

M-MTax — Tue, 29 Dec 2020 17:31:26 GMT

Box 14....it's informational for the employee.

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

Vivek13 — Tue, 29 Dec 2020 18:20:01 GMT

Great Thx

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

needhelp22 — Tue, 15 Mar 2022 01:28:43 GMT

Hi - I'm trying to get help on this exact question for 401k contributions!!! It seems like you're talking about the W2 and not the 1120s. Can you clarify which lines on the 1120s would be employer and which would be employee? My software automatically generates the w2 & other documents based on the 1120s. Thanks! @M-MTax

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

JillS56 — Tue, 15 Mar 2022 01:51:26 GMT

On Form the 1120S the lines that apply to the officer/owners and what are employee lines.

Line 7 is for officer/owner compensation;

Line 8 is for employee wages;

Line 17 is where any pension, 401k, profit sharing expenses are reported

NOTE: The employees' deduction would not go on this line. The employees' portion is part of their wages.

Line 18 are benefits offered to employees

The rest of the lines pertain to the business as a whole.

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

needhelp22 — Tue, 15 Mar 2022 01:55:50 GMT

Thank you!!! so then on line 8 - do I report the total wages paid (wages plus 401k), or just the wages without 401k?

PS YOU ARE AMAZING!!!!!!!!!!!!!!!! Seriously my favorite person right now!!!!!!!! : D @JillS56

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

needhelp22 — Tue, 15 Mar 2022 02:01:04 GMT

@JillS56 Oh yes, and to deduct therapy expenses (I'm a therapist), does this just go as 'other deduction'? Thanks in advance again!!! I've been on hold trying to talk to someone at HR block for like.... 2 hours? awful....

Re: on what line item of 1120s and W2 do i show employee 401k and employer SEP IRA contribution

JillS56 — Tue, 15 Mar 2022 02:17:08 GMT

Yes, any other expenses you have for your therapy business can be listed in other deductions.