Hello, I formed an LLC with S-corp tax status in Q4 of 2023 and had 1099-NEC income. I made salary payments to myself and have a W-2. Do I add this W-2 as income (alongside my other W-2s) and also add as an expense to my 1099 income?
If the 1099-NEC was issued to your LLC, the income needs to be added as income on your S-Corp return, Form 1120-S. The amount of the W2s that you issued will need to be included in your 1120-S as an expense. Your W2 amount will need to be reported as compensation of officers and the other W2s as salaries and wages.
@xanman2112 wrote:
Where do I do an "S-corp return" in Turbotax?
A Form 1120S for an S Corporation can only be completed and filed using the TurboTax Business Edition.
The Business Edition can only be installed on a Windows based personal computer.
The Business Edition cannot be used to complete a personal tax return, Form 1040.
Go to this TurboTax website for the 2023 Business Edition - https://turbotax.intuit.com/small-business-taxes/cd-download/
Thanks! Do I still add the 1099-NEC on my personal tax return?
@xanman2112 wrote:
Thanks! Do I still add the 1099-NEC on my personal tax return?
As stated by the TurboTax expert on this thread above your post -
If the 1099-NEC was issued to your LLC, the income needs to be added as income on your S-Corp return, Form 1120-S. The amount of the W2s that you issued will need to be included in your 1120-S as an expense. Your W2 amount will need to be reported as compensation of officers and the other W2s as salaries and wages.
When you complete the 1120S it will create a K1 for you. This you will add to your personal return. Be sure you fill in all the lines provided by the K1 so that your personal tax version of Turbo Tax will try to calculate a QBE deduction (if you qualify). In some cases, the program has failed to do this and its usually because all of the referenced K1 lines (even if *'d) are not selected in your personal return.