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Help, I can't find the area to make this ordinary income/loss be also placed on line 14 with an A for social security income or loss. I've been through each page of the program and I am not seeing the area to check so this happens. PLEASE tell me what I am not doing and where to do it...Please.
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Its a single party, that builds homes. He does the manual labor etc... I am looking at each line and don't see where it can be.. .unless i just over ride it and type it in... but should be a box to check so he is required to report it on a personal income tax schedule SE.
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No such box. Sub S earnings aren’t subject to SE taxes. Wages paid out to the shareholder are subject to Social Security and Medicare like wages paid to anyone else
Slava Ukraini!
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You betcha!
Slava Ukraini!
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To clarify: "Its a single party, that builds homes. He does the manual labor etc... I am looking at each line and don't see where it can be.. .unless i just over ride it and type it in... but should be a box to check so he is required to report it on a personal income tax schedule SE. "
Who prepared the 1120S? Your taxpayer works for their S Corp. They are not SE. They are supposed to get payroll. You, preparing their 1040, would use their W2, issued by the S Corp.
Your taxpayer does not report the business gain or loss on the SE, because that would come from having a self-employed business, as is reported on a Sched C. Your taxpayer won't have a Sched C for this same business, because this business stands alone as an S corp. That's why it is an S Corp, reporting on form 1120S, and then passing through the info to the shareholder, which is your taxpayer as Employee-Shareholder.
There is no Owner, in this case.
Even if that business has a loss on the 1120S, the taxpayer would have payroll payments, and the S Corp had to report and pay payroll and payroll taxes. If that did not happen, whoever is in charge of the financial management of the S Corp has done it wrong.
Hope that helps.
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