What are the tax guidelines for salary verses dividends in North Carolina?

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What are the tax guidelines for salary verses dividends in North Carolina?

2006-09-22 15:35:10 · 2 answers · asked by Curious 1 in Business & Finance ➔ Other - Business & Finance

2 answers

The IRS is going to frown on huge dividends if your salary is below average. Since dividends are a way to avoid FICA, you have to expect them to look askance at that. Pay a market based salary and large dividends won't be a problem.

2006-09-22 15:47:39 · answer #1 · answered by united9198 7 · 0⤊ 0⤋

Taxed as a lump sum. Reg. income

2006-09-22 22:42:30 · answer #2 · answered by ed 7 · 0⤊ 0⤋