Schedule K-1 (Form 1120S) is a source document that is prepared by a corporation as part of the filing of their tax return (Form 1120S). After filing Form 1120S, each shareholder is provided a Schedule K-1 by the corporation. The K-1 reflects a shareholder's share of income, deductions, credits and other items that the shareholder will need to report on their individual tax return (Form 1040).
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 1040. 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.
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. See: Form 1040 - Schedule K-1 (Form 1120S) - Heading Information.
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. See: Form 1040 - Schedule K-1 (Form 1120S) - Income (Loss) Items, Deductions, Credits & Foreign Transactions, Alternative Minimum Tax (AMT) Items, Items Affecting Shareholder Basis, and Other Information.
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 enter a K-1 (Form 1120S) in TaxSlayer Pro from the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- Rents, Royalties, Entities (SCH E, K-1, 4835, 8582)
- K-1 Input - Select 'New' and double-click on Form 1120S K-1 S Corporation.
If the Form 1120S – U.S. Income Tax Return for an S Corporation was prepared in the Business Program of TaxSlayer Pro, the Schedule K-1 (Form 1120S) can be pulled to the 1040 for the shareholder. From the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- Rents, Royalties, Entities (SCH E, K-1, 4835, 8582)
- K-1 Input - Select 'Pull' and double-click on Business Package. The program will then pull the Schedule K-1 into the K-1 1120S Edit Screen for your review.
NOTE: This is a guide on entering Schedule K-1 (Form 1120S) into the tax program. This is not intended as tax advice.
Additional Resources:
Shareholder’s Instructions for Schedule K-1 (Form 1120S)
Schedule K-1 (Form 1120S) - Heading Information
Schedule K-1 (Form 1120S) - Income (Loss) Items
Schedule K-1 (Form 1120S) - Deductions
Schedule K-1 (Form 1120S) - Credits & Foreign Transactions
Schedule K-1 (Form 1120S) - Alternative Minimum Tax (AMT) Items
Schedule K-1 (Form 1120S) - Items Affecting Shareholders Basis
Schedule K-1 (Form 1120S) - Other Information
