Form 1040 - Schedule K-1 (Form 1120-S) Overview

Online · Written guide Content date September 11, 20262 min read

Schedule K-1 (Form 1120-S) is a source document that is filed with the S corporation income tax return (Form 1120-S). After filing Form 1120-S, the corporation gives each shareholder their Schedule K-1. The K-1 reflects a shareholder's share of income, deductions, credits, and other items that the shareholder will need to report on their individual tax return.

In Tax Processors Plus Online, the S Corp Schedule K-1 is entered in a menu specifically designed for it. Some amounts entered will flow to the appropriate form or schedule in the tax return, while other amounts require the preparer to determine if and where they need to be reported in the tax return.

Schedule K-1 (Form 1120-S) consists of three parts:

Part I - Information about the Corporation. This section contains basic information about the corporation such as its name, address, and EIN.
Part II - Information about the Shareholder. This section contains information about the shareholder's percentage of stock ownership in the corporation.
Part III - Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items. This section reports the shareholder's share of the corporation's income, deductions, credits, and other amounts.

To assist you in entering the K-1 in the individual income tax return, read the IRS instructions linked below as well as any additional information the corporation provided the taxpayer/shareholder with the K-1.

To enter a Schedule K-1 (Form 1120-S) in Tax Processors Plus Online, from the Federal Section of the tax return (Form 1040) select: