Schedule S: S Corporation Distributive Income (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule S reports an S corporation’s distributive income for 2024, including business income or loss, rental income, investment income, capital gains and losses, and Massachusetts adjustments. It also collects receipts, S corporation and shareholder information, an
What you'll need
Have these forms and details ready, as applicable:
- U.S. Form 1120S, including Schedules K and D, for the income and gain amounts requested on Schedule S.
- U.S. Form 8825 for rental real estate gross income, and U.S. Form 4797 for the business property gains and losses requested on lines 47 and 48.
- The corporation’s name, federal identification number, S-election effective date and accounting method.
- Shareholder names, Social Security or federal identification numbers, and resident, nonresident or other status. Attach one Schedule SK-1 for each person who was a shareholder at any time during the tax year.
- Statements listing the sources and amounts reported on lines 40 and 41.
- If shareholders participate in a nonresident composite income tax return, the federal identification number used for that return and the number of shareholders included.
Schedule F, Income Apportionment, is also required for S corporations with nonresident shareholders and income from business activities in another state when those activities give that state the power to levy an income or franchise tax. Complete Schedule F before lines 54 through 57.
How to file
File electronically. The form states that paper returns will not be accepted.
For questions about electronic filing, call 617-887-6367. See the DOR e-filing and payment requirements for further information. The form also refers filers to TIRs 16-9 and 21-9.
Common mistakes
- Sending a paper return: The form warns that electronic filing is required and paper returns will not be accepted.
- Entering negative amounts where they are not allowed: Lines 2, 8, 9, 10 and 11 specify amounts not less than zero.
- Overlooking the election warning: Line 23 states that the annual voluntary election to pay tax at the entity level under MGL ch 63D is irrevocable, meaning it cannot be revoked.
Questions people ask
How many Schedules SK-1 must I attach?
Attach one for each person who was a shareholder at any time during the tax year. Enter the number attached on line 20.
Who completes lines 13 through 16?
S corporations sharing common ownership and engaged in a unitary business with one or more entities complete these lines. All other corporations skip to line 17.
Which shareholders should I list?
List all resident, nonresident and other shareholders in the shareholder information section. Mark the box if you attach additional pages to include additional taxpayers.
What if shareholders file as part of a nonresident composite income tax return?
Mark line 21. Enter the federal identification number under which the composite return is filed on line 22a and the number of shareholders included on line 22b.