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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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.
Also keep in mind the date of replies, as tax law changes.

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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.
Also keep in mind the date of replies, as tax law changes.

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!

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.
Also keep in mind the date of replies, as tax law changes.

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