Schedule K-1 (Form 1120S) is prepared by a corporation as part of the filing of their tax return. Each shareholder is provided a Schedule K-1 by the corporation. The K-1 reflects the shareholder's share of income, deductions, credits and other items that the shareholder will need to report on their individual tax return (Form 1040).
Schedule K-1 1120-S Form:
The actual K-1 (Form 1120S) consists of three parts:
Part I - Information about the Corporation. This section contains basic information on the corporation such as its Name, Address and EIN.
Part II - Information about the Shareholder. This section contains information about the shareholder and their investment in the corporation. Specifically, this section identifies the percentage of stock ownership that the shareholder has for the tax year.
Part III - Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items. This section is used to report the shareholder's share of any of the corporation's Income, Deductions, Credits, etc.
To assist in the entry of a Schedule K-1 (Form 1120S), review the Shareholder’s Instructions for Schedule K-1 (Form 1120S) and any instructional information that the corporation provided the taxpayer/shareholder with the K-1.
To report your 1120-S in the program, go to:
- Income (select my forms)
- Less Common Income
- K-1 Earnings
- Schedule K-1 Form 1120S
Most of the items contained on a Schedule K-1 are entered on a specifically designed K-1 Input Menu in the program. Amounts entered will then pull to the appropriate form, schedule or line of the taxpayer’s return. Some items may have to be entered on other entry menus based on the item and/or the election that the taxpayer makes on how to treat that income, deduction or credit item.
Below are links to IRS forms. These may be helpful in completing the entry of your Schedule K-1.
- Shareholder's Instructions for Schedule K-1 (Form 1120S)
- How Do I Report the 1120-S Entries That Are Not Shown in the Program? Some items reported on your Schedule K-1 (Form 1120S) may need to be entered directly into a specific form instead of the K-1 entry screen. Please refer to this link to determine if this is case for any items that do not have an entry field located on the K-1 entry screen.
NOTE: This is a guide on entering Schedule K-1 (Form 1120-S) into the tax program. This is not intended as tax advice.