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

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

Vivek13 — Tue, 29 Dec 2020 18:24:55 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. As an employee i contributed $19,500 to a 401k. As an S-Corp owner/employer I contributed $16,250(25% of $65,000) to SEP IRA.

Question

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 do i show employee 401k and employer SEP IRA contribution

M-MTax — Tue, 29 Dec 2020 20:05:18 GMT

$84500 is what you paid yourself so show that and that employee contribution doesn't show on the 1120S....only the employer contribution if a qualified plan.

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

Vivek13 — Tue, 29 Dec 2020 20:31:23 GMT

Great Thanks. I think i get it.

So in 1120S Line no 7 i.e Compensation of Officers i will be entering $84500 ($65000 + $19500). I was getting confused because in W2 my taxable income is $65,000.

Then looks like the employer SEP IRA contribution i.e $16250 will go under line no 17 i.e Pension, profit-sharing, etc., plans .

Can you please confirm my observations?

Thanks a lot for your help, also if you are a accounting specialist from turbox tax and can validate my return for the extra $60 i would love buy in.

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

M-MTax — Tue, 29 Dec 2020 20:52:40 GMT

Can't validate....you got it right now anyway.

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

Critter-3 — Tue, 29 Dec 2020 22:39:40 GMT

On the 1120S you use box five of the W-2 for the officers compensation not box one. That's where you were getting confused.

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

Vivek13 — Wed, 30 Dec 2020 16:48:15 GMT

Thanks Critter you are correct i believe. So where will i show employer contribution of $16500 on the W2?

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

Critter-3 — Wed, 30 Dec 2020 16:52:34 GMT

I think you really need local professional assistance to be educated properly ... the employee's contribution from their wages goes in box 12. The employer's portion does NOT go on a W-2.

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

Vivek13 — Wed, 30 Dec 2020 17:10:54 GMT

Yep, I agree. I have reached out to one. They are taking time. Thanks for your help as well.