2-officer S Corp (50/50 ownership), wages were paid to one officer only, but the K-1 reflect 50/50 of those wages.

[RayBookkeeper]

When entering the wages in Turbo Tax, there is no option to split the wages so the K-1's reflect the real wages paid to each officers. They are 50/50 ownership however the wages paid out are not 50/50. How do we adjust the wages reflect on the K-1's correctly? 

[Rick19744 · Accepted solution]

You don't.

The K-1 reflects how this works.  The one shareholder received wages and will pick those up on their respective 1040 and pay tax on the wages.

The wages are an expense of the S corporation.  Those expenses are reflected on page 1 of the 1120S and the bottom line net amount is then allocated to shareholder's based on their ownership.  That's just the way it works.

[RayBookkeeper]

Ah, okay. Thanks!

[Rick19744]

You are welcome.