What is the best way to input income from an S corporation?

I've properly input all my financial data to accurately reflect my circumstances - except I cannot figure out one thing. What is the best way to model a recurring income stream from an S corporation?

Neither the "Employee Wages" nor the "Self-Employment Earnings" on the "Earnings" tab would be appropriate because those cases do not accurately reflect how taxes are calculated on that income. Specifically, income from pass-through entities (e.g. S corporation) generally is subject to state and federal income taxes, but it is not subject to FICA and Medicare taxes.

I also did not see an obvious solution under the Regular Assets section either. Perhaps the Special Receipts section would be the way to go? Any suggestions would be appreciated.

Thanks.

Comments

dan royer's picture

To get taxes on the S Corporation income I'd create a special receipt taxable at ordinary rates and then off set the income with a non-taxable special expenditure to account for the FICA.