1

Background

For the 2018 tax year I paid a total of $765 in Quarterly Estimated Payments; US tax form 941.

This is the first year I've done taxes as an S Corp with myself being the sole shareholder and employee. I paid a CPA to handle everything including filling my taxes and I can't wrap my head around line 12 of 1120S. He explained it to me but it's still over my head. I plan to ask him again when he's less busy but in the meantime can you help me make sense of the following:

Question

If I paid $765 in Quarterly Estimated Payments (Form 941) for 2018 why does line 12 on my 1120S show only $536?

2

Lines 7-19 are Deductions, things that reduce your taxable income. Line 12 is for Taxes and licenses paid/incurred by the corporation in the course of doing business. The corporation deducts its portion of payroll tax paid, this is likely the main item reflected on line 12 of your return.

The S-Corps estimated payments are reflected on Line 23a.

Edit: I didn't catch that you said Form 941, that's not estimated tax payments, that's for reporting withholding from employee pay (payroll taxes). It all went to the IRS, but only a portion of it can be excluded from the S-Corp's taxable income.

  • So $536 was the S Corps portion of payroll tax? If that is the case where did/ does the remaining $229 go? Line 23a is empty on my return so maybe I am confusing what the 941's are for. – Blizzardengle Mar 20 '19 at 3:39
  • @Blizzardengle I edited my response, I missed that you stated it was Form 941. – Hart CO Mar 20 '19 at 4:14

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.