President of Fleming & Associates CPA for 20 years. I provide accounting, tax, audit, financial, forensic and valuation services to individuals and businesses. I have helped many businesses from start up to the sale or purchase of businesses and everything in between. We can help with most financial issues.
You will have to report it on your personal tax return on Schedule C. If you deposited it into your S corporation bank account, it will be counted as income twice. You can expense it on your Schedule C and net to -0- since it included in your corporation income.
In the future, provide your S corporation name and federal ID# to insure that the income will be reported as corporation income rather than personal income.
The income tax you pay will be based upon the net profits of your business. The profit or loss will be taxed on your personal tax return. In addition to income tax, you will be subject to self-employment taxes.
Depending on the amount of tax that you will be have to pay, you may be subject to paying estimated taxes on a quarterly basis during the tax year, rather than just paying 100% of your taxes when you file your income tax return on April 15.