Schedule QS: Qualified Subchapter S Subsidiary (QSub) Information (2024)
California · FTB · Used for tax years 2024
California Schedule QS reports the qualified subchapter S subsidiaries (QSubs) included in a parent S corporation’s Form 100S. It lists each QSub’s identifying information, federal QSub election effective date, and annual tax payment date and amount.
Who files this form
A parent S corporation must complete Schedule QS and attach it to Form 100S for each taxable year in which a Qualified Subchapter S Subsidiary (QSub) election is in effect.
For 2024, list each QSub whose income, deductions, and credits must be included in the parent’s Form 100S.
What you'll need
Have the following information ready to complete the schedule:
- The parent S corporation’s name and California corporation number or federal employer identification number (FEIN).
- Each QSub’s name.
- Each QSub’s California corporation number and FEIN, if it has or had them.
- The effective date of each federal QSub election.
- The date and amount of each QSub annual tax payment.
How to file
Attach the completed 2024 Schedule QS to the parent S corporation’s Form 100S.
- Enter the parent’s name and California corporation number or FEIN.
- Complete columns (a) through (f) for each QSub included in the return. Use mm/dd/yyyy for the election effective date and payment date.
- Include the annual tax amounts reported in column (f) on the parent’s Form 100S, Side 2, line 21.
The supplied text does not provide a mailing address or e-filing instructions.
Questions people ask
What is Schedule QS used for?
It tells the Franchise Tax Board which QSubs the parent S corporation owns and that their income, deductions, and credits will be included in the parent’s return.
Does a QSub file a separate California return?
The schedule notifies the FTB that the QSub will not file a separate California franchise or income tax return. However, if the QSub election takes effect after the first day of the subsidiary’s taxable year, the subsidiary must file a short-period return if it was subject to California tax before the effective date.
Who pays the QSub annual tax?
The parent S corporation must pay an $800 annual tax for each QSub it owns that is incorporated, qualified, or doing business in California.
What if a QSub does not have a California corporation number or FEIN?
Enter each number if the QSub has or had it. Leave the corresponding field blank if the QSub does not have that number.
Does the federal QSub election apply for California purposes?
Yes. A parent S corporation’s federal election under Internal Revenue Code Section 1361(b)(3) to treat a corporation as a QSub is treated as a binding election for California purposes.