I am clergy, and have an approved exemption from Social Security. When entering a W2 in Turbotax, I'm presented with the option to state that it is clergy income and thus exempt from SE taxes. However, I have an SCorp into which all honoraria I receive for speaking is deposit. It issues me a K1. When entering the K1 information into Turbotax, I don't see a place to state that it is clergy income and thus exempt from SE taxes. Any help on this one?
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Income from an S corporation is exempt from self-employment tax for all shareholders, so no additional entry is needed to designate it as such. An S corporation shareholder would issue a W-2 form to report wages from the corporation if he or she received compensation from it. It would be appropriate for you to issue yourself a W-2 form to report compensation you receive from the S corporation.
Thank you sincerely. I thought that to be the case, but wanted to confirm without inserting my preconceptions into my question. Thank you for confirming my thinking.
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