KS: Shareholder's Share of Income, Credits and Modifications (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule KS reports an S corporation shareholder’s share of income, credits and modifications for 2025. It also reports Minnesota-source income, composite income tax paid and withholding, as applicable.
Who files this form
The S corporation must complete and provide Schedule KS to:
- Each nonresident shareholder.
- Each Minnesota shareholder who has adjustments to income or credits.
- All shareholders if the corporation elects pass-through entity (PTE) tax.
Shareholders must include Schedule KS when filing Minnesota Form M1 or Form M2. The schedule also provides information used to complete Form M2SB for an electing small business trust.
What you'll need
To complete Schedule KS, have:
- The shareholder’s name, mailing address, federal ID or Social Security number, entity type, and stock ownership percentage.
- The S corporation’s name, mailing address, federal ID, and Minnesota tax ID.
- The shareholder’s income, credit, and modification amounts, including the applicable Minnesota portions of federal Schedule K-1 amounts.
- Certificate numbers for applicable credits on lines 23, 24, 27, 28, and 29, and the National Park Service project number for line 30.
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: Provide Schedule KS to the required shareholders. Include the schedule and copies of federal Schedules K and K-1 when filing Form M8.
- Shareholders: Report the amounts on the appropriate Minnesota return lines identified in Schedule KS and its instructions. Include Schedule KS when filing Form M1 or Form M2.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving Schedule KS out of your return. If you do not include it with Form M1 or Form M2 as required, the department will disallow credits and assess tax or reduce your refund.
- Not amending after a change. If an amended Schedule KS changes your income or deductions, you must file an amended Minnesota return using Form M1X or Form M2X.
- Entering cents. The form says to round amounts to the nearest whole dollar.
- Reporting amounts excluded from federal income. For lines 39–50, if federal limitations kept an item from being fully included in your federal income, include only the amount included in your federal adjusted gross income.
Questions people ask
What is Schedule KS used for?
It gives S corporation shareholders information about their share of income, credits, and modifications needed to complete Minnesota Forms M1, M2, or M2SB.
Does Minnesota tax all of a resident individual shareholder’s S corporation income?
A Minnesota resident individual is taxed on all of their distributive income from the S corporation, even when the income is apportioned between Minnesota and other states.
Can a nonresident avoid filing Form M1 if the entity pays PTE tax?
The instructions say you do not need to file Form M1 if your only Minnesota-source income is from entities making a PTE tax election or entities in which you elected composite income tax.
Can I file to recover Minnesota tax withheld if my income is below the filing threshold?
If your 2025 Minnesota-source gross income is less than $14,950 and Minnesota tax was withheld, as shown on line 34 or line 53 of Schedule KS, the instructions say to file Form M1 to receive a refund.