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.
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dan royer
Fri, 01/22/2016 - 08:29
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To get taxes on the S
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.