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Ghana, CRTP
Category: Tax
Satisfied Customers: 12
Experience:  Registered California Tax Professional since 1990
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i am an officer and owner of different scorporations i

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I am an officer and owner of 2 different S-corporations. I received a salary from one of the corporations (the other was not profitable in '05) in 2005. Do the corporation taxes need to be filed first before I can file my own personal taxes? If not, how do I add my corporation salary to my personal taxes? Is there a special form? Thanks.

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Yonkers, New York

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Submitted: 11 years ago.
Category: Tax
Expert:  Ghana replied 11 years ago.
This information is general in nature and does not reflect all the details of your situation.

Congratulation on being a successful business owner. I strongly encourage you to sit down with a tax professional to discuss all the pertinent details to your tax situation.

Form 1120S Income Tax for A S Corporation
Form K-1 Attachment

Form 1040 Individual Income Tax Return

S Corporations are what we call pass through entities. The income, expenses and deductions are passed through to each shareholder. That information is passed through to each shareholder on a form K-1.

The K-1 tells each shareholder how and where to put the income, expense or deductions onto their individual tax returns.

Use the links below for more information.

2005 Form 1120S

2005 Instruction 1120-S

I should also point out that a reasonable salary should be issued to you by each S Corporation each year. You should end up with two W-2's and two K-1's every year.

The K-1's will direct you as to where on your individual form 1040 tax return, to put the various incomes, expenses, and deductions. I expect you will also have passive income or losses that will be reported on a 1040 Schedule E.

You will need to have the S Corporation returned completed before you can accurately prepare your individual return.
The deadline for the S Corporation return is March 15 2006. The due for the individual return is Aprill 17 2006.

I hope this is helpful to you.
Ghana and other Tax Specialists are ready to help you