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Old 04-29-2015, 08:01 AM
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Join Date: Apr 2015
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Wis Income tax disparity

Hi All, So here is the problem. I am equal partners in a small closed corporation. We customarily take distributions from the corporation at tax time to pay the taxes and estimates. Usually my partner and I have similar tax bills as we draw the same salary and benefits. He is single, no dependents, although from payroll records I found he has been claiming one dependent which his ex-wife is entitled to. I am married, wife does not work. When we came to pay the 2014 Taxes our federal taxes were similar but his state taxes were almost 60 times what mine were. Mine were 10 dollars due, his were 6000 dollars due. I questioned our accounting firm on how that could have happened and they refused to answer me, claiming privacy rights. We were both making estimate payments through out 2014. The only thing I can figure is that, because he was claiming a deduction for a dependent while drawing salary he paid less into the system for taxes, and therefor increased his take home pay. Then when it came time to actually file his taxes he filed single no deductions. Then because of our policy to take distributions to pay taxes the corporation was left on the hook to pay the difference. He has since left the company BTW....Any thought on how this could have played out to leave such a large discrepancy in Wisconsin taxes owed for 2014?



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