KS: Shareholder's Share of Income, Credits and Modifications (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule KS reports an S corporation shareholder’s share of income, credits and modifications for 2024. It also reports Minnesota withholding, composite income tax paid and amounts used to calculate alternative minimum tax.
Who files this form
For tax year 2024, the S corporation must complete and provide Schedule KS to:
- Each nonresident shareholder.
- Each Minnesota shareholder who has income adjustments or credits.
- All shareholders if the S corporation elects pass-through entity (PTE) tax.
Shareholders use Schedule KS to complete Form M1, Form M2, or Form M2SB, as applicable. Include Schedule KS when filing Form M1 or Form M2.
Nonresidents do not need to file Form M1 if their only Minnesota-source income is from entities making a PTE tax election or entities in which they elected composite income tax.
What you'll need
To complete or use Schedule KS, have the applicable information and documents ready:
- Shareholder name, mailing address, federal ID or Social Security number, entity type, and stock ownership percentage.
- S corporation name, mailing address, federal ID number, and Minnesota tax ID number.
- Federal Schedule K-1 (1120S) information for the Minnesota portion of income and deductions.
- Certificate numbers for any applicable housing, film production, agricultural asset, or sustainable aviation fuel credits, and the National Park Service number for the historic structure rehabilitation credit.
S corporations must include Schedule KS and copies of federal Schedules K and K-1 with Form M8. Shareholders must include Schedule KS with Form M1 or Form M2.
How to file
- S corporations: Complete Schedule KS and provide it to the required shareholders. Include it and copies of federal Schedules K and K-1 when filing Form M8.
- Shareholders: Report the amounts on the return and schedule lines identified in Schedule KS and its line instructions. Include Schedule KS when filing Form M1 or Form M2.
- Amended information: If an amended Schedule KS changes your income or deductions, file an amended Minnesota return using Form M1X or Form M2X, as applicable.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving Schedule KS out of your return. If you omit it when required with Form M1 or Form M2, the department will disallow credits and assess tax or reduce your refund.
- Ignoring an amended Schedule KS. You must amend your Minnesota return if the amended schedule changes your income or deductions.
- Reporting amounts excluded from federal income. For lines 39–50, if federal limitations keep some items out of your federal income, include only the amounts included in your federal adjusted gross income.
- Discarding installment-sale records too soon. Resident individuals with information reported on line 7 must retain Schedule KS for the entire period that they, or an entity they have an interest in, receive installment-sale payments.
Questions people ask
What is Schedule KS for?
It gives shareholders their share of an S corporation’s income, credits, and modifications needed to complete their Minnesota returns.
Does a Minnesota resident report income apportioned to other states?
Yes. An individual Minnesota resident is taxed by Minnesota on all distributive income from the S corporation, even if that income is apportioned between Minnesota and other states.
Can a nonresident file to recover Minnesota tax withheld?
If your 2024 Minnesota-source gross income is less than $14,575 and you had Minnesota tax withheld, as shown on line 34 or line 53, file Form M1 to receive a refund.
How should amounts be rounded?
Round amounts to the nearest whole dollar.
What if a nonresident has installment-sale information on line 7a?
A nonresident individual with information on line 7a must file Form M1AR, Accelerated Recognition of Installment Sale Gains, with their Minnesota individual income tax return.