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I am an IT consultant and have a scorp. Last year I earned

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about $200000 from my clients...
I am an IT consultant and have a scorp. Last year I earned about $200000 from my clients. I have paid myself wages to the tune of $100000. Can I classify the rest as a distribution ? Also since scorp is a pass through entity do I need to file business taxes ? If I need to file do I need to show $200000 as income or $100000 as income ?
Submitted: 1 year ago.Category: Tax
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3/15/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,888
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

You have to file the S corp return. A corporation or other entity must file Form 1120S if it elected to be an S corporation. You have to issue your self a K1. You should also have a W2 for the pay you received for the $100k.

You will have all the income passed to you so you and the profits of the S corp (after expenses) will also be taxable to you.

I think you need to get an accountant to assist you in all your filing especially that payroll tax issue.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

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