S-Corp Profit Distributions: How Are Owners Taxed?

[Noureen A S.]

Dilemma...

I have an S-corp. For the majority of 2017, I paid myself outside of payroll ($5K was paid to me thru payroll and $20K were just 'owner withdrawals' - my acc'tant said they must be recorded as "profit distributions").

So, for 2017, I've been left with the following #s:

- S-Corp profit: $10K

- (personal) W2: $5K

- (personal) profit distribution ("earnings"?): $20K

Exactly what will I be paying income taxes on? (I have 100% ownership)

- $35K? (S-Corp flow-thru + W2 + profit distribution)

- or $15K and I pay a different kind of tax rate on the $20K of profit distributions?

Thanks in advance, guys!