McDonnell Tax Services, LLC

McDonnell Tax Services, LLC Let us help you with all of your Tax Needs. We can review past returns and consult with you as you prepare for the upcoming year.
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Family-owned small business, founded in 2007. Offering Tax Return Preparation and bookkeeping services for Individuals/Families, Businesses, Corporations, non-profits etc.

04/16/2026

4/15 Schenanigans

01/26/2026

📊 ⚖️ An S-Corp doesn't change how much you earn. It changes how that income is classified — and classification determines which taxes apply.

As a sole proprietor, all net profit is subject to self-employment tax: 12.4% for Social Security (up to $184,500 in 2026) plus 2.9% for Medicare on everything. With an S-Corp, you split your earnings between a W-2 salary and distributions. Only the salary portion triggers payroll taxes. Distributions skip them entirely.

But there's a tradeoff most people overlook. The Qualified Business Income (QBI) deduction — which can reduce taxable income by up to 20% — applies only to the distribution portion. Pay yourself too high a salary, and you shrink the pool that qualifies for the deduction. Pay yourself too little, and the IRS may reclassify distributions as wages anyway.

The optimal split isn't always obvious. It depends on profit level, the wage base, and how salary decisions ripple into other parts of the tax code.

01/23/2026

Being stuck in the house this weekend for the winter storm makes a great time to gather your tax documents to come see us in the next couple of weeks.

06/04/2025

The IRS says it is going to send out 13 million "Notice of Intent to Levy' in the month of June.

Send a message to learn more

Here is some big news if you are behind in payments to the IRS.
12/20/2023

Here is some big news if you are behind in payments to the IRS.

The IRS is waiving roughly $1 billion in late-payment penalties for millions of taxpayers with balances under $100,000 from returns filed in 2020 and 2021.

If you receive income in a business venture, you are still required to report it. The delay in 1099's is only that the...
11/24/2023

If you receive income in a business venture, you are still required to report it. The delay in 1099's is only that the income won't be reported to the IRS.

Tax agency also said it will boost the reporting threshold to $5,000, from $600, in 2024 as it phases in the new regulation.

Address

2442 Devine Street
Columbia, SC
29205

Opening Hours

Monday 8am - 7pm

Telephone

+18033972884

Website

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