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ryans
New Member

My wife is founder/director of a non-profit. She received $2,000 pay in 2017. We also contributed $1,740 to the non-profit. Can we net those amounts and show $260 in pay?

 
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Rick19744
Level 11

My wife is founder/director of a non-profit. She received $2,000 pay in 2017. We also contributed $1,740 to the non-profit. Can we net those amounts and show $260 in pay?

No.  The IRS does not like netting and rightly so in this case; lack of payroll tax (FICA).

You need to reflect both amounts just as the transactions happened.

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

3 Replies
Rick19744
Level 11

My wife is founder/director of a non-profit. She received $2,000 pay in 2017. We also contributed $1,740 to the non-profit. Can we net those amounts and show $260 in pay?

No.  The IRS does not like netting and rightly so in this case; lack of payroll tax (FICA).

You need to reflect both amounts just as the transactions happened.

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

ryans
New Member

My wife is founder/director of a non-profit. She received $2,000 pay in 2017. We also contributed $1,740 to the non-profit. Can we net those amounts and show $260 in pay?

Thank you Rick! Much appreciated!
Rick19744
Level 11

My wife is founder/director of a non-profit. She received $2,000 pay in 2017. We also contributed $1,740 to the non-profit. Can we net those amounts and show $260 in pay?

Welcome
*A reminder that posts in a forum such as this do not constitute tax advice.*
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