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Level 2
posted Feb 6, 2023 6:34:39 AM

Should I amend my 1120S?

We have an S-corp with two owners (51% & 49% stake). No other employees or shareholders. I incorrectly included both of our W-2 wages in line 8. I believe this should have be included in line 7. Our total deductions remains the same and nothing else on the form will need changed.

 

Is this worth sending an amended 1120-s?

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1 Best answer
Expert Alumni
Feb 6, 2023 7:32:42 AM

It depends on the total amount and if the salaries and wages are reported elsewhere on the return, such as amounts included in the cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan.  If the total wages are not $500,000 or more and are not included anywhere else in the return, no need to amend. Given there are no other employees your salary and wages deduction is correct and this is only a presentation issue.

 

You usually need to amend Form 1120S when you make an error that affects your business income, deductions, or tax credit. 

 

For additional information please refer to the link below:

 

Form 1120S instruction

 

@cookies kicks 

1 Replies
Expert Alumni
Feb 6, 2023 7:32:42 AM

It depends on the total amount and if the salaries and wages are reported elsewhere on the return, such as amounts included in the cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan.  If the total wages are not $500,000 or more and are not included anywhere else in the return, no need to amend. Given there are no other employees your salary and wages deduction is correct and this is only a presentation issue.

 

You usually need to amend Form 1120S when you make an error that affects your business income, deductions, or tax credit. 

 

For additional information please refer to the link below:

 

Form 1120S instruction

 

@cookies kicks