My wife and I are both 1099 independent business owners with World Financial Group. They only pay out to our personal bank accounts since we can only connect our SSN numbers instead of an EIN number of a corporation into their system. We are projecting our 2023 year net income to surpass 60K. Can we set up an S Corp and have all the 1099 personal income earned with World Financial Group pay to our S Corp, have the S Corp pay my wife (an owner-employee) a reasonable salary, and have the S Corp pay out all the expenses? When filing the 1040 form, would it look like this: Schedule C with income from World Financial Group commissions and an expense for the management fee paid to the S Corp, and Schedule K-1 with income from sales management and expenses including payroll for my wife and other additional expenses? On Schedule C, we would be net zero as married filing jointly, and on Schedule K-1, we would have net income where we distribute this net income without worrying about social security tax. Is this a legitimate practice and will it not cause trouble with the IRS?

September 28th, 2023

I sent a request last week about my tax return. I cannot get into my TurboTax account because I reset my passwords and didn't write them down. I was advised to use the account recovery page, but I still can't get in. What should I do next?

April 24th, 2023

How can I get a transcript of a deceased loved one's 2021 tax return?

February 8th, 2023

Is paying taxes per hour like paying for the most expensive jewelry?

September 29th, 2024

I have several options for receipt of previously unpaid non-recurring engineering consulting fees accruing since 2017 in the amount of ~ $600,000, sometime in May, 2023. Additionally, I may also be receiving buyout funds for my % share holdings in U.S. General Fuel Cell Corp for $5,365,000. How can I reduce the tax exposure from these one-time events?

April 6th, 2024