Reporting shareholder distributions beyond wages
Are distributions to shareholders reported on a 1099-MISC separate from the K-1? I paid myself a reasonable wage and would like to remove some of the excess profit. How is this supposed to be reported?
Hi Randy, if you paid yourself a salary and deducted the appropriate payroll taxes then this info should be reported on a W2 form, not a 1099-MISC. Since I am not a tax professional, I recommend that you confirm how this should be reported on your tax return.