Hi
For a single member S corp under 50 year old. He has drawn $70000 as gross wages.
Break up us
$37584 Box 1 wages
$22500 Solo 401k Employee deferal
$7750 Employer HSA contribution for family
$4166 Health insurance premium for marketplace and private dental and vision
So my question is what should be wages reported on Schedule K1 for QBID section 19AA.
Should it be $70K or less?
see REV PROC 2019-11 section 5 and then choose one of the 3 methods.
Thanks for the document. I read through all the three options.
If I choose option 3, then it gives highest reportable W2 wages.
Does it mean I will have to correct my W2 as well and report the box 12 wages reprorted under code D, added back to taxable witholding wages?
In other words, I can get QBID on my 401k contribution but I have to loose tax deferal on those. Its one or other. Is it true understanding?
Also any amount eported inder Box 12 , W and DD are not counted as wages for QBID purpose. Is that correct understanding as well?
No, for method three you will take the total of box 1 and the amount coded D, E, F, G or S. In your example that means adding $37,584 and $22,500 for a total of $60,084. There is no need to amend the W2.
The amounts coded W and DD are not included.