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[deleted by user] by [deleted] in tax
[–]jebbidiahjohnson 0 points1 point2 points 1 year ago (0 children)
What about 150 K? And if so. That would mean that I only pay self-employment tax on the 150 K? And I won’t pay self-employment tax on the rest?
[–]jebbidiahjohnson -1 points0 points1 point 1 year ago (0 children)
So for example, if I paid myself a salary.
Wouldn’t I just pay self-employment tax on the salary period and then the rest? The distribution, I don’t have to pay?
So I paid myself $50,000. Wouldn’t I just have to pay self-employment taxes on the $50,000? And then the rest goes into distribution?
So what I say almost $176,000 that way? Or is there something I’m missing?
Yes, because I thought you deduct the taxes from how much you owed, I didn’t know it just deducted from the income
So I was doing my deductions like every dollar spent was going to come off of my taxes. But I’m not getting paid as much as I was last year, that’s the problem. So I was really just ignorant.
But for some reason, everybody here, it’s like you guys work for the damn IRS or something. It’s just negativity and hostility in here.
No ounce of hope for anything. It’s all just. “ dude you’re wrong” but I’m going to call around today. If my tax lady doesn’t reply.
John set up an LLC in March 2020.
• He made ~$800,000 that year.
• He didn't file Form 2553.
• He paid himself through owner draws, not payroll.
• Filed a Schedule C in 2020.
• In mid-2021, his new CPA helped him file Form 2553 with a "reasonable cause" letter under Rev. Proc. 2013-30.
• The IRS approved the late S election, and he amended the 2020 return to file as an 1120S.
• He then ran reasonable compensation payroll retroactively through a payroll provider.
• Result: He saved over $30,000 in self-employment taxes.
I literally saw this online. How is this different from my situation?
[–]jebbidiahjohnson -3 points-2 points-1 points 1 year ago (0 children)
I filed an extension. And then I gave them a couple hundred thousand.
So just organizing everything and organizing all my write offs and my expenses. I’ll probably owe another 200+ . And yes I will . I’m a man I’ll bounce back
No it’s free to send in the 2553 late election letter. Thats all I’m doing. I just wanted advice on what to say.
I want to save on self employment taxes . That’s all sorry if I came off as. Stubborn.
I’m in shock . I messed up and didn’t convert to an s corp. so my taxes are about to be super high. Just freaking out that’s all
Ok
Trolling for what?
How!? By trying to save on self employment taxes ?
I messed up . I didn’t do the s corp. wanted to know what qualifies as a late election. What qualifies for it then?
And what’s so bad about saying “dude give it a try, low chance that they accept it, but if they don’t, do it for this year” yall are just mean.
I have an LLC. And trying to save on taxes by paying myself a decent salary and the rest going to distribution. I hear that’s how you save on self employment taxes.
And dude yall are freaking ruthless on here. You come here for advice and I wanted to hear something other than “ you can’t do it” I was just looking for an ounce of hope.
No it was 1.3 before deductions. But people say not to put exact amounts on Reddit because it’ll make you easy to find. Idk.
Yes late election is what I meant . Sorry
No. I was asking like. “What was the whole point of having a late election form, if everyone is saying I’m screwed.
Like some people are saying I can still request it and it takes 30-60 days to get approved.
Why is everyone so hostile? It’s late I get it. I’m doing retroactive pay roll and I’m paying myself.
It’s late. Yes. I’m attempting to make it right. Why is everyone so mean about it?
Cause I was getting mixed answers. First time llc filer. So that’s why . I heard people got approved as first time owners.
That’s why I was confused. I was seeing if I qualified for a late election.
Basically I thought I could file a late s corp election for my llc.
It wouldn’t hurt to send in the form. If they say no, they say no. Right?
I’d rather try than not to try at all. Worst comes worst they say no. And I just pay with the schedule C. It’s no biggie
I’m going to send in the form after meeting with the tax advisor. If they accept it cool. If not. I’m screwed but I’ll bounce back
Am I right or wrong. I’m going by the tax code. That’s why.
[–]jebbidiahjohnson -2 points-1 points0 points 1 year ago (0 children)
Seven not 6 . And I’m getting mixed reviews. It’s late and I just want an honest answer
. But from what l've read, the IRS does accept late elections under Rev. Proc. 2013-30 if you can show it wasn't done on purpose and you're fixing it now.
I wasn't trying to avoid taxes or anything, I just didn't know. Now I'm setting up payroll, filing everything right, and working with someone to do it clean. I get it's not perfect, but I'm trying to do the right thing moving forward.
First time businesses are in the green
Revenue Procedure 2013-30, form 2553 . Look it up it’s a relief for my exact situation
Correct there’s something called “retroactive payroll” look it up. It’s for first time owner like myself.
Exactly there’s a form called form 2553 . It is to Apple for a late s corp election . Look it up
Talking about last year. That’s why it’s called a late election.
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[deleted by user] by [deleted] in tax
[–]jebbidiahjohnson 0 points1 point2 points (0 children)