Stimulus
April 5th, 2020 at 11:38:29 AM permalink | |
AZDuffman Member since: Oct 24, 2012 Threads: 135 Posts: 18210 |
Exactly. You take a draw and pay taxes on that. The IRS is fine with it. For a loan the UW will want to see enough reserves to cover until the draw. The President is a fink. |
April 6th, 2020 at 5:23:21 AM permalink | |
RonC Member since: Nov 7, 2012 Threads: 8 Posts: 2509 |
Like anything else, it is complicated: "However, an S corporation must pay reasonable employee compensation (subject to employment taxes) to a shareholder-employee in return for the services the employee provides before a distribution (not subject to employment taxes) may be given to the shareholder-employee." "For example, a CPA who incorporated his practice took a $24,000 annual salary from his S corporation and received $220,000 in dividends which were free of employment taxes. The IRS said that his salary was unreasonably low and that $175,000 of the dividends should be treated as wages subject to employment taxes. The court upheld the IRS’s power to recharacterize the dividends as wages subject to employment tax. (Watson v. United States, (DC IA 05/27/2010) 105 AFTR 2d." https://www.nolo.com/legal-encyclopedia/s-corporations-salaries-an-irs-hot-button-issue.html Asking a good accountant first is the best way to proceed, not all of us amateurs here...since we may have understanding of certain situations but not of all of them. |
April 6th, 2020 at 5:45:16 AM permalink | |
AZDuffman Member since: Oct 24, 2012 Threads: 135 Posts: 18210 |
That is the problem with tax law, the IRS can make it up as it goes. My point remains that you take a minimal salary if any during the year and a bonus when possible. Taxable bonus vs. dividend, well the difference between tax avoidance and tax evasion is 18 months at Allenwood. The President is a fink. |
April 6th, 2020 at 6:08:15 AM permalink | |
RonC Member since: Nov 7, 2012 Threads: 8 Posts: 2509 |
You don't take a "minimal" salary, you take a "fair" or 'reasonable" salary (and bonuses, depending on how you do it) that is properly taxed to avoid issues with the IRS. Those "reasonable" numbers are easy enough to find and stay within the rules. |
April 6th, 2020 at 6:55:44 AM permalink | |
AcesAndEights Member since: Oct 24, 2012 Threads: 6 Posts: 351 |
If you received a refund via direct deposit for either of the past 2 years, they will use that same bank info. Hopefully there will be a mechanism for you to provide your DD info if that doesn't cover you. I sure hope so. One thing that I haven't seen spelled out, yet, is if you paid taxes due via a checking account will they be able to use that info. The way it's phrased, I don't think they will. I had taxes due for 2019 (already filed), but for 2018 I did receive a refund and that account is still valid. So I'm covered, but if you tend to owe most years (I try, but messed it up in 2018) you may be SOL on the electronic payment. "You think I'm joking." -EvenBob |
April 6th, 2020 at 7:24:47 AM permalink | |
kenarman Member since: Oct 24, 2012 Threads: 14 Posts: 4511 |
The Canadian agency (CRA) made that dead simple for people. For the last week or so if you logged into your bank account remotely you got a pop up. Say yes to the pop up and provide your SIN# and the bank would send your bank account info to the CRA for direct deposit. Canadian payments are going to be $500 / week but you will have to phone in every 4 weeks. Fortunately I don't qualify since I can still work at both my jobs. "but if you make yourselves sheep, the wolves will eat you." Benjamin Franklin |
April 6th, 2020 at 9:56:45 AM permalink | |
Face Member since: Oct 24, 2012 Threads: 61 Posts: 3941 | Sorry for not paying attention; there's a bit too much demanding attention these days... I filed my '19 in mid Feb. I assume that means that'll be what's used to judge me? And since I was on comp and had a whopping $7,XXX to claim, that I'm guaranteed on this list to receive "help"? Do I understand this correctly? Be bold and risk defeat, or be cautious and encourage it. |
April 6th, 2020 at 11:15:44 AM permalink | |
SOOPOO Member since: Feb 19, 2014 Threads: 22 Posts: 4175 |
We do more... ALL of the distributions are subject to employment taxes, just it is the individual's responsibility to pay them. And of course we have a large accounting firm doing this for us... |
April 6th, 2020 at 12:18:53 PM permalink | |
AcesAndEights Member since: Oct 24, 2012 Threads: 6 Posts: 351 |
Yes, as I understand it you should get the full $1200 for yourself and $500 for any children on your return. "You think I'm joking." -EvenBob |
April 11th, 2020 at 3:27:20 PM permalink | |
petroglyph Member since: Aug 3, 2014 Threads: 25 Posts: 6227 | Are people receiving checks yet? https://www.commondreams.org/news/2020/04/11/trump-labor-secretary-condemned-despicable-efforts-roll-back-unemployment-benefits The last official act of any government is to loot the treasury. GW |