Have a Tax Question? Ask a Tax Expert
Hello, how are you?
(as soon as you respond - we'll start reviewing your question)
Before I can answer the question I need to know:
1. Are you married, do you have children?
2. Where are you a resident?
3. Do you take an itemized or standard deduction annually? If itemized, how much?
Let me know - thanks.
I am divorced and have one child. My ex-wife and I alternate claiming her. The upcoming year isn't my turn.
I am a resident of Nassau County.
Ah ok, so let me do the calculations then:
So $7129 plus $8187 = $15,316 in operating losses
are you the sole owner of this S corp? All these losses go to you?
I don't know the answer to your third question. How would I find out? Can I look on my copy last years tax return? Corporate or personal ?
oh I mean, do you run this business alone or with others?
or are you a passive investor in the S corp?
do you receive a K-1 at the end of the year?
Yes, I am the sole owner. I would love to split the losses over the next 2 years if I take the new job.
And another question, why is there a carryover loss? Did your accountant classify this as passive income or active income?
Passive income means this is more of an investment for you.
Active income means you actively participate in running this business.
(are you having trouble with this chat?)
I don't know. where on the tax return can I find out ???
Ok, do you have the return with you? Do you see a Schedule E on your tax return?
The reason this is important is because passive losses can only offset passive income. Active losses can offset ordinary income, like wages. I have a feeling that the reason you have a carryover is because it's a passive loss.
Sure, take your time.
I have an 1120S, 1125A, and schedule K-1
Ok great, where on the K-1 does it show the loss - which box #?
i also see CT-3S and CT-34-SH
Yeah that's fine, those are NYS s-corp schedules
I am more interested in the K-1 and where the loss appears, which box is it in?
okay. On for K-1 (form 1120S) the loss is on line 1. Then again on K-1 (form CT-3-S) it's on line 11.
Where are you located ???
I am located in NYC. I live in Queens.
Line 1 - excellent, ordinary business loss.
Ok, it should apply against ordinary business income then - thanks.
Ok, let me do the calculation then.
Nothing. I just like you : )
Oh, well, thank you, XXXXX XXXXX it. :)
ok, so here it is, the government is going to take about 25% via federal and NYS taxes
You can make up to $79450
Here is the math: $79,450 - $15316 = $64134
$64,134 * 0.75 = $48,100
$48,100/52 weeks = $925 per week
(I am assuming you get paid 52 weeks per year)
Does that answer your question?
Sorry. I am confused.
Hi, sure, what are you confused about>?
Your annual salary should be $79450 in order to take home $925.
So I my anual salary would have to be $79, 450 to take home $925 a week with my losses?
This calculation takes into account your tax bracket, your NYC non-resident status and your losses (both years).
They want to pay me around $55K.
Ah ok, let me redo the calculation based on that.
You number cannot be right.
How many depandants do I put on the form when you first start a job?
I was thinking I could safely put 3 or maybe even 4 !
For someone who is single, put 1. But since you have the loss, you can put 3.
So if you're making $55,000 per year, and take home $41,250 after taxes, your salary post-tax is $793 per year.
However, since you have the loss.
$793 per year ??
Sorry phone call.
no, no $793 per week.
Ok, there are two ways to go about it.
If you take 1 allowance on your W-4, you'll receive a refund at the end of the year.
If you take 3-4 allowances on your W-4, you'll break even (approximately) at the end of the year.
I want to try and come close to breaking even.
So in the first circumstance, you'll get $793 every week in your paycheck. But at the end of the year, you'll receive a refund.
Ok, let me do the breakeven calculation.
Ok, so if you take 3 allowances, you'll be making $899 per week.
$55,000 salary, take home 85% or $46,750. So your weekly salary (assuming 52 paychecks) is $899.
Bi-monthly they pay.
In that case its $1947 bi-monthly
Okay, so if I propose an anual salary of $55,000 a year AND claim 3 dependants, my bi-monthy check will be appox. $975 per week take home? Roughly...Correct ???
Can you email me your calcualtions?
My email is :
My name isXXXXX
Hi Herby, your e-mail came back all XXXs, they don't allow the exchange of emails and phone numbers unfortunately.
I got in trouble for that once.
I am also looking for a new accountant so if you want to talk about my situation please feel free to call me anytime.
Yes, $899 per week, correct.
Your phone number came back like this:
five one six eight eight seven one two three four
drop me a text and I will text you my email
and $1947 divided by 2 comes to $973.50
It's not by 2
wouldn't this be my take home amount for a week? roughly of course
remember 52 weeks per year - if you got paid every other week, that's 26 paychecks
if you get paid twice a month, that's 24 paychecks
so that's why it's not double the weekly, it's slightly more
Okay Z. I gott get to Long Island. You have been a great help. I am going to pay the $30 now !