20S: S-Corporation Information/Tax Return (Revision)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Form 20S is the 2024 S Corporation Information/Tax Return. It reports income, deductions, Alabama adjustments, and income allocated or apportioned to Alabama, along with tax due, credits, payments, and any refund.
What you'll need
Have the corporation’s federal Form 1120S information, income and expense records, beginning- and end-of-year balance sheet figures, shareholder counts, and tax payment information available.
The form calls for these attachments when the related items apply:
- Federal Form 1125-A for cost of goods sold.
- Federal Form 4797 for the gains or losses reported on page 1, line 4, and Schedule K, line 8.
- Federal Form 4562 for depreciation reported on page 1, line 14.
- Form 7205 for the energy efficient commercial buildings deduction.
- Form 8825 for net rental real estate income or loss.
- Schedule PC for total credits on Schedule K.
- Statements for other income, taxes and licenses, other deductions, and other entries marked as requiring a statement or schedule.
- Prior written approval if using separate accounting as a multistate corporation.
For Schedule DE, gather each qualified subchapter S subsidiary’s or disregarded entity’s name, FEIN, income or loss from all sources, and Alabama-source income or loss.
Common mistakes
- Using the wrong signs on line 25: Enter nonbusiness income as a negative amount and losses as a positive amount.
- Claiming depreciation twice: Line 14 is for depreciation not claimed on Federal Form 1125-A or elsewhere on the return.
- Including oil and gas depletion on line 15: The form specifically says not to deduct it there.
- Completing unnecessary schedules: Do not complete Schedule B or Schedule C if the entity operates exclusively in Alabama.
- Using Schedule K to allocate separately stated business income: The form warns multistate entities not to do this and refers them to the Schedule B instructions.
- Leaving out separate-accounting approval: Prior written approval is required and must be attached for multistate separate accounting.
Questions people ask
What types of tax are listed on Form 20S?
Line 32 lists excess net passive income tax, LIFO recapture tax, and built-in gains tax, with boxes to identify the applicable type.
Who signs the return?
The signature area asks for an officer’s signature, title, and date. There is also a separate section for a paid preparer.
Can the Department of Revenue discuss the return with my preparer?
The form has a checkbox authorizing a Department of Revenue representative to discuss the return and attachments with your preparer.
Where do I list subsidiaries and disregarded entities?
Use Schedule DE to list all qualified subchapter S subsidiaries, also called Q-Subs, and disregarded entities. Attach additional schedules if needed.