2020 TuboTax Business: 1120-s Line 18 Employee Benefit programs

[GVSLLC]

In past years my accountant completed my LLC tax returns.  Each year the LLC provides some employee benefits (not wages) and these costs have been recorded on Line 18 of Form 1120-S.  I am trying to complete 2020 taxes myself this year.   

I do not see any means to enter employee benefits that get reflected on Line 18.   Instead, the costs are automatically shifted to Line 7 - Compensation of Officers, which then is reflected as W-2 wages on 199A Statement A (QBI Pass-through Entity Reporting).  In turn, this impacts my personal tax return unfavorably.

How can I enter Employee Benefits so they are recorded on Line 18 and not reflected as W-2 Wages on 199A Statement A?

[JeffreyR77 · Accepted solution]

You can use Forms Mode to access the Form 1120-S directly and enter the non-taxable benefits on line 18 directly.  TurboTax is automatically adding the taxable benefits in the interview mode. 

IRS Publication 15 provides guidance on what fringe benefits can be provided tax-free to employees and can be included on line 18.

[GVSLLC]

Thanks!  Issue resolved.

[Planman315]

Where can I find Form 1120-S ? It does not show up on Forms or Open Forms. Where do I enter non-taxable employee benefits for an LLC?

[VolvoGirl]

@Planman315  What version do you have?  You need Turbo Tax Business to do a 1120 S return, not to be confused with the personal Home & Business program.  

Turbo Tax Business is not available to do online or on a Mac. You can buy the Window version here. And you can have both TT Business and TT Home & Business (or any personal version) installed on your computer at the same time.
https://turbotax.intuit.com/small-business-taxes