T.M. Tax Practices

T.M. Tax PracticesT.M. Tax PracticesT.M. Tax Practices

T.M. Tax Practices

T.M. Tax PracticesT.M. Tax PracticesT.M. Tax Practices
  • Home
  • About
  • Contact Us
  • Documents
  • Services
  • FAQ & Tax Topics
  • Videos
  • More
    • Home
    • About
    • Contact Us
    • Documents
    • Services
    • FAQ & Tax Topics
    • Videos
  • Sign In
  • Create Account

  • Bookings
  • My Account
  • Signed in as:

  • filler@godaddy.com


  • Bookings
  • My Account
  • Sign out


Signed in as:

filler@godaddy.com

  • Home
  • About
  • Contact Us
  • Documents
  • Services
  • FAQ & Tax Topics
  • Videos

Account


  • Bookings
  • My Account
  • Sign out


  • Sign In
  • Bookings
  • My Account

Frequently Asked Questions

Am I required to file a form 1099?

Am I required to pay myself a salary from my business?

Am I required to pay myself a salary from my business?

 

You may be required to file a 1099 for a variety of payments made during the course of running a business. One of the most common circumstances under which a 1099 is required is if you paid a vendor or contractor over $600. Other common scenarios are if you paid rents over $600 , royalties over $10, interest on loans, dividend distributi

 

You may be required to file a 1099 for a variety of payments made during the course of running a business. One of the most common circumstances under which a 1099 is required is if you paid a vendor or contractor over $600. Other common scenarios are if you paid rents over $600 , royalties over $10, interest on loans, dividend distributions, or retirement distributions. 

There are some exceptions to the filing requirements for payments to contractors, rents and royalties and those exceptions are payments via credit card and payments made to Corporations. 

We are happy to answer your questions regarding 1099 requirements via our chat or email at info@tmtaxpractices.com

Am I required to pay myself a salary from my business?

Am I required to pay myself a salary from my business?

Am I required to pay myself a salary from my business?

The requirement to pay a salary depends on how you are operating your business. The only business structure that requires a reasonable salary is an S Corporation. 

If you are operating as a Partnership or Sole Proprietorship you would not pay yourself a salary but instead take a distribution from the company. If you are operating as a C Co

The requirement to pay a salary depends on how you are operating your business. The only business structure that requires a reasonable salary is an S Corporation. 

If you are operating as a Partnership or Sole Proprietorship you would not pay yourself a salary but instead take a distribution from the company. If you are operating as a C Corporation you may pay yourself a salary but it is not required. It is always recommended to work with a tax professional experienced in business tax preparation and planning to get the best advice and guidance in paying yourself from your business.

What is a tax refund?

Am I required to pay myself a salary from my business?

What is a tax refund?

Generally, a tax refund is a repayment of taxes you may have overpaid throughout the year. For example, if you are a W-2 employee and you had more federal income tax withheld than the amount of your tax liability due at the end of the year the IRS will refund you the overpayment amount. Also, you may be eligible for a refundable tax credi

Generally, a tax refund is a repayment of taxes you may have overpaid throughout the year. For example, if you are a W-2 employee and you had more federal income tax withheld than the amount of your tax liability due at the end of the year the IRS will refund you the overpayment amount. Also, you may be eligible for a refundable tax credit. Refundable tax credits may result in a refund if the credit is in excess of your tax liability due. Refundable tax credits are how individuals who claimed "exempt" may still receive a tax refund at the end of the year. It is still considered a refund even though you had no withholdings during the year. 


The other side of this is when you underpay your tax throughout the year. If it is determined that your tax was underpaid it will result in an additional tax liability due at the end of the year.


It is important to make sure you've made the appropriate elections and have the optimal withholdings or estimated tax payments to avoid owing additional amounts at the end of the year.

Tax Topics

Tax and Accounting Articles

Copyright © 2025 T.M. Tax Practices - All Rights Reserved.

Powered by

  • Home
  • About
  • Contact Us
  • Documents
  • Services
  • FAQ & Tax Topics
  • Videos

This website uses cookies.

We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.

Accept