For Form 1120S (S Corporations), after you complete the 1120S, do you also have to complete the 'self-employment income and expenses' section?

[elineagar]

Does the 'self-employment income and expenses' section take the salary paid from the 1120S and that is the income or is it the gross business income in both? Or only complete the 1120S?

[dmertz · Accepted solution]

You are not self-employed.  You are an employee of the S-corp who must receive a reasonable wage from the S-corp, reported on Form W-2.  Appropriate Social Security and Medicare taxes must be withheld from your wages and paid by the S-corp as with any employee.  Wages and FICA are expenses of the S-corp.

[Critter-3]

After the 1120-S is completed a K-1 form will be issued  along with the  W-2 from the corporation ( if you did payroll as required )  will be entered on the personal return.   DO NOT enter the income/expenses again on the personal return unless you like paying extra taxes.