How do I suppress 199A wages in a S Corporation?

[jmayes]

I am attempting to suppress W-2 wages for 199A purposes. I input "-1" and each shareholder shows "-1" in wages.  If I input zero, it uses the wages figures from the return.  Any ideas?

[George4Tacks · Accepted solution]

Screen 27 > Other Information > Section 199A > W-2 wages [O] > -1 

===============

Section 199A W-2 Wages [O] 

Other Information                             Screen 27; Code 162

The program assumes that Deductions: “Salaries and wages” (Screen 15, code 34), COGS: “Cost of labor” (Screen 14, code 3), “Compensation of Officers” (Form 1120S, page 1, line 7), Farm Income: “Labor Hired” (Screen 18, code 17), RRE: “Wages and salaries” (Screen 21, code 15), and Other Rentals: “Wages and salaries” (Screen 22, code 15) represent Section 199A W-2 Wages. Section 199 W-2 Wages are included on the Schedule K, line 17d supporting statement and are allocated to the Schedule K-1 based on the shareholder's percentage of ownership. The entry in this field overrides the automatic calculation of Section 199A W-2 Wages.

NOTE: Special rules apply to the calculation of W-2 wages, and the amount of wage expense entered may not represent W-2 wages for this purpose.  For example, W-2 wages from Statutory Employees should not be included in Section 199A W-2 wages. Additionally, there may be some areas of Form W-2 that may also need to be included in Section 199A W-2 wages. Refer to section 6051(a)(3) and (8) and Notice 2018-64 for more information.

[jmayes]

That's copied & pasted from the "Help" area.  Let me rephrase my intent - I want wages to be zero.

[George4Tacks]

Try 1. That should round out to zero on the K-1. Maybe @Kathi_at_Intuit has a better solution.

[George4Tacks]

@jmayes Do you still have the -1 in the overrides in Screen 33? If so, remove them. I believe my answer is correct.

[Kathi_at_Intuit]

I agree with @George4Tacks If I have wages entered and have put a -1 in screen 24>Other Information (20) W-2 wages (AA) I see on the K-1 -1 for W-2 Wages Code W. If I remove the -1 in screen 24 and only have the -1 in the screen that George has mentioned, this removes the -1 and I am showing no wages.

[jmayes]

This did fix it - My concern is Lacerte coming out with a fix in the meantime and me not catching it, but for now it's good. Thanks all!

[abctax55]

In Lacerte, " -1 "  IS zero.

Are you saying that the -1 isn't suppressing the wages amount?

[jmayes]

Yes - Entering "-1" shows up as "-1" on each 50/50 shareholder's K-1. Rather than "0".