Do I have to pay myself if one person company have net operating loss more than company income ?

[jackjieli]

I have a question, I have a C corporation,  and I am the only one in the company,  net operating  loss from previous year is $26000,  I  operated my business  as part-time,  and I had income  $6000 in 2023,  do I have to pay myself ?  since I still have $26000 - $6000 = $2000  net operating loss I can carry forward ,

can anyone answer this question ? Thank you in advance !

-JL

[RobertB4444]

As the owner of a C Corporation you'll pay taxes at the corporate level.  You don't have to pay yourself anything.  If you do take money out of the corporation for personal use you have to report it.  But if you never do then you never do.  

Certainly you aren't required to pay yourself if the corporation has no money to do so.

@jackjieli 

[jackjieli]

@RobertB4444,

   Thank  you Robert for the answer!  also, if I didn't have payroll  in 2023, the I don't  need to fill F-940 and F-941 for 2023, is it correct? 

   Thank you and have nice night!

-JL

[LindaS5247]

As long as you've never paid any wages or filed a Form 941 in the past, you won't have to file Forms 940 or 941 in 2023. 

If you have filed a Form 941 in the past for your business, you may need to file one even if you have a quarter with no employees or wages to report. (See exceptions below under "When Must You File" for Form 941).
 

Click here for instructions for Form 940. 

Click here for instructions for Form 941.

When Must You File?

File your initial Form 941 for the quarter in which you first paid wages that are subject to social security and Medicare taxes or subject to federal income tax withholding. See the table titled When To File Form 941, later.

Then, you must file for every quarter after that—every 3 months—even if you have no taxes to report, 

Also to clarify, if you've taken any distributions from your corporation, you would need to consider reasonable compensation.  Please see the information regarding "Paying Yourself" in this article, click here.  See the section entitled "Reasonable Compensation".

Click here for information regarding Form 941.

Click here for "How to Pay Employer Federal Taxes."

 Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support.