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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13579
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have several questions to ask. Last year we made our small

Customer Question

Good morning!
I have several questions to ask. Last year we made our small company an S Corp, which consist of just my husband and myself. I am not sure if to give ourselves each a 1099. Not sure how the distribution works or if to add to my 1099.Thanks
Tara
Submitted: 11 months ago.
Category: Tax
Expert:  Robin D. replied 11 months ago.

Hello

As an S corp you would not issue 1099MISCs to yourself or any other "employee".

S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Your K1 will have this "flow through" information.

This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.

An owner of stock in an S corporation also performs services for the company making him, in addition to an investor in the company, an employee of the company. This means a W2 as an employee is not issued a 1099MISC for compensation.

Expert:  Robin D. replied 11 months ago.

Please advise if you need more information

Expert:  Robin D. replied 11 months ago.

Now that you have viewed my answers to your many questions, please post below