42-008: IA 1120S Schedule K-1 42-008 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 1120S Schedule K-1 reports a shareholder’s share of an S corporation’s income, deductions, and Iowa modifications, including federal/all-source amounts and amounts attributable to Iowa. It also reports Iowa composite tax paid on the shareholder’s behalf, PTET credits,
Who files this form
The S corporation must include completed Iowa Schedule K-1s, including additional attachments, for all shareholders with its IA 1120S return.
Shareholders may have an Iowa filing requirement even if they are not Iowa residents. The S corporation must file a composite return on behalf of its nonresident shareholders, except under certain circumstances, and should notify shareholders if it has done so.
A shareholder must file a return to claim any composite, PTET, or tax credits.
What you'll need
The 2024 Schedule K-1 asks for:
- Corporation and shareholder names, addresses, and taxpayer identification numbers.
- The shareholder’s residency status, entity type, and ownership percentage.
- The corporation’s PTET election status.
- The shareholder’s share of Iowa receipts, receipts everywhere, and total nonbusiness income.
- The S corporation’s Business Activity Ratio from IA 1120S, Schedule E, line 13.
- Federal/all-source amounts and amounts attributable to Iowa for income, deductions, and modifications.
- Composite tax paid on the shareholder’s behalf on the 2024 IA PTE-C, PTET credits, and Iowa tax credit details.
Completed Iowa Schedule K-1s and any additional attachments for all shareholders must accompany the IA 1120S return.
How to file
Include completed Iowa Schedule K-1s, including additional attachments, for all shareholders with the IA 1120S return.
The form does not provide a mailing address or e-filing directions. It directs taxpayers to revenue.iowa.gov or to call 515-281-3114 or 800-367-3388 for filing information for individuals, corporations, and other entities.
Common mistakes
- Leaving out a shareholder’s K-1 or attachments. The form requires completed Iowa Schedule K-1s, including additional attachments, for all shareholders with the IA 1120S return.
- Assuming nonresidents have no Iowa filing requirement. The shareholder notice says a filing requirement may apply even if the shareholder is not an Iowa resident.
- Overlooking the return requirement for credits. A return must be filed to claim any composite, PTET, or tax credits.
Questions people ask
Could I need to file an Iowa return if I do not live in Iowa?
Yes. The form says shareholders may have an Iowa filing requirement even if they are not residents.
Does the S corporation file a composite return for nonresident shareholders?
The form says the S corporation is required to do so except under certain circumstances. It should notify you if it has filed one on your behalf.
Where are composite tax and PTET credits reported?
Part III reports Iowa composite tax paid on the shareholder’s behalf on the 2024 IA PTE-C and Iowa PTET credits reported to the shareholder.
Should amounts include cents?
Yes. The form directs you to enter dollars and cents.