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shf1957
Level 6
March 13, 2023
Solved

where do i check a box on a 1120S so that on the k1 it should show box 14 (A) to have the social security figure?

  • March 13, 2023
  • 2 replies
  • 30 views

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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Best answer by IRonMaN

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 

2 replies

shf1957
shf1957Author
Level 6
March 13, 2023

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. 

 

qbteachmt
Level 15
March 14, 2023

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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IRonMaN
IRonMaNAnswer
Level 15
March 13, 2023

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!
shf1957
shf1957Author
Level 6
March 13, 2023

Thank you IRonMaN..   

IRonMaN
Level 15
March 13, 2023

You betcha!

Slava Ukraini!