- March 15, 2018 at 10:52 pm #174504
hello, I’m writing because I have a doubt .My husband owns a business. I work there with him, and every month we pay a salary to ourselves. When we did our tax declaration, we did it together, the person who filled the form didn’t report our salaries as expenses, the problem is that the profit of the business plus the salary that was paid monthly was reported as my husband income. This is correct? because it seems to me that if our salaries are not deducted from those profits, it means that they are included there. The total income for both of us,was hos salary + my salary + the business profit, the issue is that we paid our salaries from that profit.March 15, 2018 at 11:02 pm #175301
I believe you are on the right track. The salary that you received should be reported as your income. However, they should have also been reported as business expenses which would have reduced the business profit that was reported. I recommend that you speak with a tax pro as soon as possible because it sounds like you will need to amend your tax return.
If you don’t have a tax professional, check out this article which gives you some resources to locate a tax pro:https://fitsmallbusiness.com/how-to-find-a-quickbooks-proadvisor/