Schedule K-1 (Form 1120-S): Schedule K-1 (Form 1120-S) (2024)
Federal · IRS · Used for tax years 2024
Schedule K-1 (Form 1120-S) reports a shareholder’s share of income, deductions, credits, and other tax items for 2024. It also includes information about the corporation and shareholder, including share ownership and loans from the shareholder.
Who files this form
The S corporation uses Schedule K-1 (Form 1120-S) to report each shareholder’s share of income, deductions, credits, and other items. The corporation files a copy with the IRS.
If you are a shareholder, include your share on your tax return if you are required to file a return. You may owe tax on your share of the corporation’s income even if it was not distributed to you.
Generally, keep Schedule K-1 for your records rather than filing it with your return. The exception is when box 13, code O, reports backup withholding.
What you'll need
Have these records available when reporting your Schedule K-1 items:
- Your Schedule K-1 and any attached statements. An asterisk (*) or “STMT” indicates additional information on an attachment.
- Records needed to figure your stock and loan basis. The instructions generally direct shareholders to use Form 7203 to calculate stock and debt basis.
- Records of prior-year losses, deductions, or credits that could not be used because of applicable limitations.
- Separate statements of income, expenses, and other items for each activity when needed to apply the at-risk or passive activity rules.
If the corporation gives you Form 8283 for noncash charitable contributions, complete your own Form 8283 using the information provided and attach the corporation’s Form 8283 to your return.
How to file
The corporation files a copy of Schedule K-1 with the IRS. As a shareholder, use the amounts and attached statements to report items on the appropriate parts of your own tax return, applying any required limitations first.
Keep your Schedule K-1 for your records. Do not file it with your return unless backup withholding is reported in box 13 using code O.
The provided text does not specify a mailing address or e-filing procedure for Schedule K-1.
Common mistakes
- Changing an incorrect K-1 yourself. Notify the corporation and ask for a corrected Schedule K-1. Do not change items on your copy. Make sure the corporation sends the corrected copy to the IRS.
- Assuming every reported loss or deduction is fully deductible. You are responsible for applying the applicable limitations. Your allowed amount may be less than the amount on Schedule K-1.
- Reporting items differently without the required explanation. Generally, report items consistently with the corporation’s treatment. If your treatment is inconsistent, or the corporation has not filed a return, file Form 8082 with your original or amended return. Failing to file it when required may result in a penalty.
- Counting a guaranteed loan as loan basis without making a payment. Guaranteeing or co-signing a loan does not itself give you loan basis. Basis arises only to the extent you make a payment under the guarantee.
Questions people ask
Do I owe tax if the corporation did not pay me the income?
You may be liable for tax on your share of the corporation’s income whether or not it was distributed. Include your share on your return if a return is required.
Is my share of S corporation income subject to self-employment tax?
No. Your share of S corporation income is not self-employment income and is not subject to self-employment tax.
Why does my K-1 show only the last four digits of my identifying number?
The corporation may shorten the number on your copy for your protection. It reports your complete identifying number to the IRS.
Does Schedule K-1 show actual dividend distributions paid to me?
No. The corporation must report actual dividend distributions totaling $10 or more for the calendar year on Form 1099-DIV.