Should preface this with this is my first time filing Form 1120s (s corp). Really wish I had not taken someones advice and created an LLC taxed as an S-Corp, but it's too late for that now..
Say that my sole member s-corp did not make much, so I distributed all of the income to myself as wages. So FICA taxes are owed on these wages.
Say it was $10,000 in wages (is actually about this). So FICA is roughly $1500. All of this is paid out as wages, but the corporation still owes $750 as its part of this, correct? Because no more money was made, this means the ordinary business income is actually a loss?
Total income (line 6) = $10,000
Comp. of Officers (line 7) = $10,000
Taxes and licenses (line 12) = $750
Total deductions (line 20) = $10,750
Ordinary business income (line 21 = line 6 - line 20) = ($750)
It's this last part that doesn't seem right to me. My ordinary business income will now be a loss of $750.. Or was really the comp. of officers supposed to be $10,000 - $750 = $9,250?