"Steven" <Steven[at]Google.com> wrote:

- quote -

Steven, The W-2 income is an expense of the S corp, ERGO it
reduces the companies profit.

At least that's how My s Corp works.

Any profit gets distributed proportionately to the
shareholders per K1,

This amount is added to each shareholders Income Tax Return
NOT as w2 income.

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"Steven" <Steven[at]Google.com> writes:

- quote -

Normally an S-Corporation pays no tax. Bottom line net
income (after expenses for the shareholders salary, et al)
are distributed to the shareholders and IT IS TAXED but
not as a dividend but as ORDINARY INCOME!!!

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I need some help regarding how s-corp is taxed. When they
say S-Corp does not have double taxation, that means the
dividend for the shareholder will not be taxed, but the
company's profit is taxed? What about the W-2 income? It
will get taxed no matter what?

I live in New York state

Thanks and have a great evening,

Steven

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