If you are a shareholder in an S-corporation, the S-Corporation must file its own tax return on Form 1120S, which is due on March 15th for calendar year filers.
TaxAct® supports the Form 1120S
return and the individual Form 1040 return. You can obtain additional information and order both programs at www.TaxAct.com
An S-corporation is a pass through entity, meaning it will pass all income to each shareholder to report on their individual income tax return. When the S-corporation return is prepared, it must produce a Schedule K-1
for each shareholder. This K-1
is reportable on the individual’s personal income tax return. Generally, an S-Corporation will only be taxed at the business level when they switch from being a C-Corporation to an S-Corporation; however, there are other situations in which an S-Corporation may be taxed (and it does not flow through to the shareholders).
The Schedule K-1
data is entered in the Business Income section of the TaxAct 1040 program.
- From within your TaxAct return(Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click Business Income
- Click S Corporation income (Form 1120S Schedule K-1)
- The program will proceed with the interview questions for you to enter or review the appropriate information