W2 Payments to S-Corp Principals
I'm new to doing 1120S returns, so excuse my ignorance on this. I have two co-owners of an S-Corp who are 50/50 shareholders. They only started taking W2 compensation in 2018, and I am helping them file 2018 taxes (yes, they're well aware that they are late). My question: do I report their W2 income from the business on line 8 of the 1120S (Salaries and Wages), or line 7 (Compensation of Officers), or somewhere else? Also, do I then report those same W2 payroll transactions to the principals as income on their 1040?
