Outside of my 9-5 job (with a W-2), I have a
Single Member LLC with 1 employee.
Payroll creates his W-2 & another
W-2 for me.
1) Do I include myself in Employee Wages?
2) Do I enter my W-2 from
my LLC under Personal?
1) Yes, all wages paid by the LLC are reported on Schedule C as Employee Expenses, along with the employer portion of payroll taxes. Be sure you indicate during the business profile set-up that you have employees (you have two - yourself and one other).
2) Yes, enter the W-2 you received from the LLC under Wages & Income >> W-2.
3) Estimated Taxes you paid for the year are entered under Deductions & Credits >> Estimated Taxes >> Federal Estimated Taxes, by quarter.
1) Yes, all wages paid by the LLC are reported on Schedule C as Employee Expenses, along with the employer portion of payroll taxes. Be sure you indicate during the business profile set-up that you have employees (you have two - yourself and one other).
2) Yes, enter the W-2 you received from the LLC under Wages & Income >> W-2.
3) Estimated Taxes you paid for the year are entered under Deductions & Credits >> Estimated Taxes >> Federal Estimated Taxes, by quarter.
Estimated Tax Payments (Line 65) for my Federal and State Tax Filings were Adjusted/Corrected, slashed from $3000 to $0.
I own a small consulting LLC for which I paid estimated taxes throughout 2015 as well as myself via a W2.
I asked this forum "Where do I enter tax deposits previously paid from Form 941?" to which I was guided: "Estimated Taxes you paid for the year are entered under Deductions & Credits >> Estimated Taxes >> Federal Estimated Taxes, by quarter."
1) I summed each quarter's Form 941 payment to Federal EFTPS, Is that the appropriate content for Estimated Taxes?
2) Should I appeal the IRS decision directly or is that something for a professional (CPA, Tax Lawyer, etc)?
Only estimated payments made on a 1040ES form go on line 65. Your W2 payments go on Schedule C as a business expense. If you report your LLC on schedule C in your personal tax return you DO NOT pay yourself or give yourself a W2! The Net Profit or Loss is your personal income in the first place.
Thank you, VolvoGirl. I paid myself via W2 to ensure I was correctly calculating and paying estimated taxes. Should I continue to make estimated tax payments via payroll but not complete a W2 for myself at year end?
Have I double-taxed myself or would the estimated taxes paid via 941 only apply to the business?
You have a big problem. See the answer rjs left you on your other question.
Thank you, VolvoGirl and RJS. It seems I misinterpreted how to distinguish myself from my LLC.
Yes, I am the only owner of the LLC. I have 1 additional employee.
I submit Form 941 for employee taxes withheld (myself and the employee). I had assumed these withheld taxes were for the year's tax total and the monthly 941 payments were estimated taxes for the year. Thus, I reported these estimates from 941 on my 1040 (as indicated by TurboTaxPatriciaV - see above).
If you still feel I was incorrect and need professional guidance, what type or credential should I seek in the "tax professional" (Enrolled Agent, CPA, CFA, JD)?
I would suggest an EA, or a CPA who specializes in income taxes. (Not all CPAs do.)
FYI, I may have previously signed in as @patrick.
Any additional thoughts from @TurboTaxPatriciaV ?
Oh, are you the same as the original poster? We think her post missed part of your question and didn't fully address it.