S-Corp Shareholder Wages & Income – Ohio Withholding

December 17th, 2018

capture2The Ohio Business Deduction allows an S-Corp shareholder to deduct from their Ohio income up to $250,000 ($125,000 if married, filing separately) of S-Corp profits.  W-2 wages paid to the shareholder are also included for the deduction, if the shareholder owns 20% or more of the S-Corp.

You may want to consider adjusting your Ohio withholding and/or estimated payments since no tax will be due on combined S-Corp profits and W-2 wages up to these amounts.

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