Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
08-03-2017 03:54 PM
I just to make my taxes my self on form 1040 using the Sch C, but now I have a S corp, and I need to file 1120S. I'm wondering whats gonna happen withe the income that stay on the business, since I'm the only member and I did take all the business profit as a distribution. Can someone please help me with this?
08-03-2017 05:45 PM
Welcome to the H&R Block community.
Profit that is retained by your business will be reported on the 1120S. An S-Corporation does not have to pay the FICA taxes on its retained earnings (the profit that remained with the company). You will only pay the FICA taxes on your salary that you had the company pay you though. Also, an S-Corporation is a flow-through entity, so your share (100%) of the business' profit after all expenses including your salary should be reported to you on Schedule K-1 for the 1120S.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)