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Can wages earned by the spouse of an 100% S-Corp owner employee be part of Officer Comp on Line 7 of Form 1120S?

An S-Corp Officer is both employee and 100% shareholder.  With this logic, an S-Corp Officer's wife who indirectly owns 100% of shares also work for the Company, participating decision making with the husband, I wonder if it makes sense to report her wages as  part of the "Officer Comp" on Line 7 of Form1120S?  (Assume Married Filed Jointly)
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Level 15

While there is imputed stock ownership, there is not imputed officership. 


ex-AllStar

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Level 15

While there is imputed stock ownership, there is not imputed officership. 


ex-AllStar

View solution in original post

Thank you for responding.  I also consulted my tax professor and he said the officer’s legality is actually not a tax issue, but is governed by the state law.  As long as the wife is a legal officer under the state jurisdictions where the S-Corp is incorporated, she can report her salary as officer comp.  

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Level 15

Correct. In your OP you never said she was an officer.


ex-AllStar
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