How to pay a solo owner of an S-corp in Turbo Tax? (Director? Employee?)

Forum|Forum|1 year ago
May 22, 2024
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Every year I follow the guide, and every year Turbotax gives me a warning at the end that I did it wrong and that I need to put my salary as a director and not an employee.

I'm claiming the income, so not too worried, but have no clue about the proper way to enter it in Turbotax. I always have to go into forms to change it to be correct. I keep thinking Turbotax will fix it the next year, but they never do.

dsoile

Hello MauryM

Our apologies for the confusion. Since, you are an officer, thus for S-Corp purposes on the software, you will enter your salary under the officers section and not the employees section. The employees section will be for employees and shareholders that are not officers. I hope this helps

MauryMAuthor

Interesting... I've never seen the officers questionnaire. I wonder how to get there. I enter things in the W2 sections as I'm entering W2s which automatically puts me as an employee.

I think there is something wrong with the interview process because it's 3 years running now and I don't recall seeing a question about being an officer. (Or perhaps I'm doing it right and it's being overwritten by my W2. Seems like many years it shows I'm making 2x the salary I do until I go back and delete my entries from the questionnaire.)

A few tooltips on the questionnaire would really help in this regard in the software. I know others have had this issue as well.

dsoile

Hello MauryM

On TurboTax business desktop )if you are using the TurboTax business desktop version), when you click the salaries and wages paid tab, you will enter officer salary in the Officers (>2% ownership) section. If your business had employees, and you paid employees, make sure you note that in the about your business section (you will be asked if you paid any employees and/or contractors during the tax year). If that is not the case, then when you go to the salaries and wages paid tab, you will only be able to enter salaries and wages in the following sections: 1) Officers (>2% ownership), 2) Officers (<2% ownership), & 3) Shareholders (>2% ownership)