How are s corp disbursements taxed?

Question

I'm the sole owner. Assuming my s corp makes $100,000 and I pay myself $50,000 through salary and $50,000 through a disbursement, how is the disbursement taxed?

Answer 1

It depends on the type of income covered by the disbursement.  They are treated the same as received by the individual.

Answer 2

Technically "disbursements" are not taxed.  The $50k in corporate profits is taxed on your return whether you take a distribution of it or not.  Assuming, that it is from ordinary corporate income, it is taxed as ordinary income on your 1040.