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#5
02-09-2005, 03:55 AM
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 Re: Social Security? KSB wrote: - quote - > I started an S corporation last year and am filing an 1120s.
Your "account"ant is correct.> My account tells me I do net have to pay self-employment > taxes on the ordinary business income (line21). Is he > correct? HowEVER! Has he mentioned to you the issue of reasonable compensation via a W2 form to yourself? ChEAr$, Harlan Lunsford, EA n LA Mon 7 Feb 2005 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
02-09-2005, 03:36 AM
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| Re: Social Security? - quote - > I started an S corporation last year and am filing an 1120s.
You do NOT pay SE tax on the net income from your S Corp.> My account tells me I do net have to pay self-employment > taxes on the ordinary business income (line21). Is he > correct? You should be receiving a salary where FICA and Medicare taxes are deducted. If you have not been paying yourself a salary, but have net income to report, then the IRS can ask why no salary? Mary Ann Thomas, EA in AZ << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
02-09-2005, 03:17 AM
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| Re: Social Security? "KSB" <nospam[at]nospam.net> wrote: - quote - > I started an S corporation last year and am filing an 1120s.
Yes. Listen to him.> My account tells me I do net have to pay self-employment > taxes on the ordinary business income (line21). Is he > correct? -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-09-2005, 02:58 AM
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| Re: Social Security? "KSB" <nospam[at]nospam.net> wrote: - quote - > I started an S corporation last year and am filing an 1120s.
He sure is. The corporation has to pay FICA taxes on your> My account tells me I do net have to pay self-employment > taxes on the ordinary business income (line21). Is he > correct? salary (you did take a salary, didn't you, if you paid yourself any profits from the business?), but income distributions are not subject to SE tax. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-09-2005, 02:39 AM
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| Re: Social Security? "KSB" <nospam[at]nospam.net> wrote - quote - > I started an S corporation last year and am filing an 1120s.
Yes. he is correct. BUT.......part of the money you take> My account tells me I do [not] have to pay self-employment > taxes on the ordinary business income (line21). Is he > correct? from the business should be in the form of wages, which are subject to payroll taxes (Social Security and Medicare, FUTA and SUTA as well). If you don't have any wages paid to yourself, consider doing so for 2005. -- Paul A. Thomas, CPA Athens, Georgia taxman at negia.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-09-2005, 02:20 AM
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| Re: Social Security? Yes he is correct. You pay SS taxes on your employee income on W-2 only and are not subject to SE taxes on the remaining profit. ed << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-07-2005, 05:57 PM
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| Social Security? I started an S corporation last year and am filing an 1120s. My account tells me I do net have to pay self-employment taxes on the ordinary business income (line21). Is he correct? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| security, social |
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