Schedule S: S Corporation Distributive Income (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule S reports an S corporation’s distributive income for 2025, including business income or losses, rental income, portfolio income, and capital gains and losses. It also records receipts, Massachusetts income adjustments, and shareholder-related information.
What you'll need
Have these forms and details ready, as applicable:
- U.S. Form 1120S, including Schedules K and D, for the federal income amounts requested on Schedule S.
- U.S. Form 8825 for rental real estate gross income and U.S. Form 4797 for certain business property gains and losses.
- 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.
- One Schedule SK-1 for each person who was a shareholder at any time during 2025.
- Statements listing sources and amounts for income reported on lines 40 and 41.
- If shareholders participate in a nonresident composite return, the federal identification number used for that return and the number of shareholders included.
Schedule F, Income Apportionment, is required before completing lines 54 through 57 when the corporation has nonresident shareholders and income from business activities in another state that give that state the power to levy an income or franchise tax.
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 Massachusetts DOR electronic filing and payment requirements for more information. The form also refers 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.
- Missing shareholder schedules: Attach one Schedule SK-1 for every person who was a shareholder at any time during the tax year, not just shareholders at year-end.
- 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.
Questions people ask
Do I need a Schedule SK-1 for someone who was a shareholder for only part of 2025?
Yes. Line 20 requires one Schedule SK-1 for each person who was a shareholder at any time during the tax year.
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.
Can I enter a negative amount on the classification lines for gains?
Lines 2, 8, 9 and 10 specify amounts no less than zero. Line 11, for other income, also specifies an amount no less than zero.
What if the shareholder list does not fit on page 7?
The form provides a box to mark when attaching additional pages to include additional taxpayers. It directs you to list all resident, nonresident and other shareholders.