RI Schedule S: Excess Net Passive Income Tax Calculation (2024)
Rhode Island · RI Division of Taxation · Used for tax years 2024
Rhode Island’s 2024 Schedule S calculates excess net passive income tax and is filed with Form RI-1120S. It combines excess net passive income and taxable income from federal Form 1120S, applies the Rhode Island apportionment ratio and 7% tax rate, and compares the result with th
Who files this form
Complete 2024 Schedule S only if your corporation is a Subchapter S corporation taxable for federal purposes and is required to complete line 22a and/or line 22b of federal Form 1120S.
Schedule S must be filed with Rhode Island Form RI-1120S.
What you'll need
Have these forms and details ready:
- Your corporation’s name and federal employer identification number.
- The Worksheet for line 23a of federal Form 1120S, including excess net passive income from line 10.
- Federal Form 1120S, Schedule D, line 20, for taxable income.
- Rhode Island Form RI-1120S, Schedule I, line 5, for the apportionment ratio.
- The minimum tax from Rhode Island Form RI-1120S.
How to file
File Schedule S with Form RI-1120S. Enter the tax calculated on Schedule S, line 8, on Form RI-1120S, page 1, line 7a.
The supplied form text does not give a mailing address or e-filing instructions.
Common mistakes
- Completing Schedule S when it does not apply. The form says it is only for Subchapter S corporations taxable for federal purposes and required to complete federal Form 1120S, line 22a and/or line 22b.
- Filing Schedule S by itself. The form says to file it with Form RI-1120S.
Questions people ask
How do I calculate taxable income on Schedule S?
Add the excess net passive income on line 1 to the taxable income on line 2. Enter the total on line 3.
Where does the apportionment ratio come from?
Use Form RI-1120S, Schedule I, line 5. Enter the ratio to six decimal places on Schedule S, line 4.
What tax rate does Schedule S use?
Multiply line 3 by line 4 to calculate Rhode Island taxable income on line 5. Then multiply line 5 by 7% (0.07) to calculate the tax on line 6.
How does the minimum tax affect the final amount?
Enter the minimum tax from Form RI-1120S on line 7. On line 8, enter whichever is larger: the tax on line 6 or the minimum tax on line 7. Also enter that amount on Form RI-1120S, page 1, line 7a.