Discussion Archives:1120S Ln 12. Taxes and Licenses?
From TaxAlmanac
Discussion Forum Index --> Consumer Questions --> 1120S Ln 12. Taxes and Licenses?
| 1 February 2007 | |
| Folks
I am using Taxcut to file my 1120S. I have a S Corp and I am the only emp. I need help in deriving the numbers for Ln 12. Taxes and Licenses. The software pops up a window to fill in State Income Tax, Local Income Tax, State Franchise Tax, Local Property Taxes, Payroll Tax, etc.... What are these lines, I know it's not the State income withheld that I have from the W2 my accountant prepared for me. I have my previous years Numbers which was done by a prof accountant. This time I want to do it on my own. Tax cut has no help on this line, how to derive. Any help would be appreciated. I want someone to guide me exactly what I should be looking for and how to arrive the final numbers for Line 12. TIA Covina | |
| 1 February 2007 | |
| with all due respect, that's what your accountant did for you last year and also why its very risky to buy off-the-shelf software to prepare your own returns if you are unsure of the tax laws...
good luck | |
Death&Taxes (talk|edits) said: | 1 February 2007 |
| Take out the instructions you Pro gave you with last year's returns. More than likely your state recognizes your S Corp and thus you paid no State Corporate Income Taxes, but his instruction might tell you. Ditto the Franchise tax which would be paid to your state; if you had to pay the state, more than likely it was Franchise tax. Local income tax would be on there too. For payroll taxes, you would want to deduct the share of FICA & Medicare paid by your S. While there is some dispute here on how to compute this, add Blocks 4 & 6 of your W-2, and then add the tax paid on your Form 940 and the four quarterly state unemployment tax reports. This is payroll tax. Other taxes might be personal property, in some states, or other nuisance taxes. | |
| February 1, 2007 | |
| >>While there is some dispute here on how to compute this,
Dispute? What would that be, David? Are you watching the Pistons/Nets game? | |
| February 1, 2007 | |
| Covina. Stop, please. Just because you WANT to do them yourself doesn't mean you should. Seriously. When you're caught on line 12 of the easy page, I worry about what'll happen on pages 3 and 4 where you have NO chance of getting nearly any of it right and will pay dearly for errors there. Don't do it. Throw down the money and save the aggravation later. S's and LLC's are the trickiest things we do (not counting estates and trusts...). It is not for amateurs, and if you read a lot of these threads, accounting degrees, certifications, and masters' degree don't even qualify some for tax prep work in this area. Trust me. I'm not getting paid to tell you this, ok? | |
Death&Taxes (talk|edits) said: | 1 February 2007 |
| Deb: let's get Michaelstar into this discussion.......and duck. We only get NBA games on TNT or ESPN.....I have Dish Network and only the basic NY Channels I think.....tons of other ones.....anyway, being from Philly I'd want to see the 76ers try for the #1 choice in the draft. Rasheed is a Philly boy, and Rip Hamilton is from Coatesville, near where my sister-in-law lives. | |
| 1 February 2007 | |
| Guys,
It's not clear yet for me, this is NC State. My corp paid paid no taxes, other than filing 940 FUTA, Federal, State and Medicare witheld (in 4 quarters), NC SUTA (1.2% of 17,800). Cn someone be more clear on this. Thanks | |
| 1 February 2007 | |
| Covina since you insist of preparing your own S-corp return you MUST ready the instructions first if you are not familiar what line 12 means.
Take JR1 advise and take this advise as well read this instructions first http://www.irs.gov/pub/irs-pdf/i1120s.pdf Good Luck | |
| February 1, 2007 | |
| Death&Taxes was very clear in telling you what can be deducted on the Taxes line. The employer's share of the payroll taxes are to be entered on that line (FICA, FUTA, SUTA). Other taxes paid by the S corp could be property taxes paid on S corp property, personal property tax paid on S corp personal property, and license fees paid by the S corp.
| |
| February 1, 2007 | |
| Here is what Mauro is trying to tell you:
Covina, since you insist on preparing your own S-corp return, you MUST read the instructions first, if you are not familiar with what line 12 means. Take JR1's advice and take this advice, as well. Read these instructions first: | |
| 1 February 2007 | |
| I do S Corps in NC. I might work cheaper than your previous if you'd like to contact me.
Not yet mentioned: NC Franchise tax, annual report fees. Is the money you are saving going to be worth the time you have to spend to research the forms line by line? And then wonder if its right? These self prepare tax programs for corporations are very limited in guidance. | |
