KristinaK
Employee Tax Expert

Deductions & credits

If you are going the S Corp route, make sure that you pay yourself a reasonable salary. It is very important and a red flag when Officer Compensation doesn't show up on the return. You can run your health insurance, HSA, or certain retirement contributions through payroll. You might need professional help to calculate the reasonable salary, but the general idea is to pay yourself at least what other businesses pay for similar services that you provide to the corporation. 

 

To answer your questions:

 

1) It is the same idea. Expenses need to be "necessary and ordinary". The company can reimburse you for business mileage. It can reimburse you for the usage of the home office. 

 

2) And yes, the process is similar. You will need TurboTax Business software to report it. It will list different types of expenses and you can add your own descriptions as well. 

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