Fillable Form 1120-S (Schedule K-1) (2020)

What is Schedule K-1 (Form 1120-S)?

Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc., is an Internal Revenue Service form used to declare a shareholder’s share of income, deductions, credits, and other items that the shareholder will need to report on their individual tax return (Form 1040). The form is given to shareholders after the S corporation has successfully submitted Form 1120-S, US Income Tax Return for S Corporation.

S Corporations are a type of corporation that meet specific Internal Revenue Code requirements, allowing them to pass income (along with other credits, deductions, and losses) directly to shareholders, without having to pay federal corporate taxes.

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

• Part I - Information about the Corporation. This section contains basic information on the corporation such as its Name, Address, and EIN. See: Form 1040 - Schedule K-1 (Form 1120S) - Heading Information.
• Part II - Information about the Shareholder. This section contains information about the shareholder and their investment in the corporation. Specifically, this section identifies the percentage of stock ownership that the shareholder has for the tax year.
• Part III - Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items. This section is used to report the shareholder's share of any of the corporation's Income, Deductions, Credits, etc. See: Form 1040 - Schedule K-1 (Form 1120S) - Income (Loss) Items, Deductions, Credits & Foreign Transactions, Alternative Minimum Tax (AMT) Items, Items Affecting Shareholder Basis, and Other Information.

Who needs to use Schedule K-1 (Form 1120-S)?

Schedule K1 (Form 1120-S) is given to shareholders by S corporations after they have filed Form 1120-S in order for shareholders to be able to calculate their share of the income, deductions, credits, and other items due to them that they must then declare on their individual tax returns.

How to fill out Schedule K-1 (Form 1120-S)?

Schedule K1 (Form 1120S) is a very short and simple form to fill out. Make sure, however, that you have the relevant documents prepared to ensure that all information you enter in the form is correct and updated. A copy of Form 1120-S filed by the S corporation may be especially useful for this purpose. If additional information or explanations are needed, you may consult the instructions for the Schedule K1 Form 1120-S on the IRS website.

Finally, it is important to download this file in PDF format to ensure that the format and information entered on it remain the same regardless of how it is sent or what program is used to open it.

Calendar or Tax Year

Enter the beginning and end of the calendar or tax year that you are filing the Schedule K1 (Form 1120S) for.

Part I - Information About the Corporation

In this section, enter the necessary information about the corporation in the spaces provided.

Line A

Enter the corporation’s Employer Identification Number (EIN)

Line B

Enter the following information about the corporation’s name and address:

• Full Legal Name
• Street
• City or Town
• State or County
• ZIP Code

Line C

Enter the name and address information of the IRS center where the corporation filed the Form 1120-S return.

Line D

Enter the corporation’s total number of shares at the beginning and end of the tax year.

Part II - Information About the Shareholder

Line E

Enter the shareholder’s identifying number.

Line F

Enter the following information about the shareholder’s name and address:

• Full Legal Name
• Street
• City or Town
• State or County
• ZIP Code

Line G

Enter the amount of allocation percentage for this year.

Line H

Enter the shareholder’s number of shares at the beginning and end of the tax year.

Line I

Enter the amount of loans from the shareholder at the beginning and end of the tax year.

Part III - Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items

Line 1

Enter the amount of ordinary business income or loss.

Line 2

Enter the amount of net rental real estate income or loss.

Line 3

Enter the amount of any other net rental income or loss.

Line 4

Enter the amount of interest income.

Line 5a

Enter the amount of ordinary dividends.

Line 5b

Enter the amount of qualified dividends.

Line 6

Enter the amount of any royalties earned.

Line 7

Enter the amount of net short-term capital gain or loss.

Line 8a

Enter the amount of net long-term capital gains or losses.

Line 8b

Enter the amount of collectibles (28%) gain or loss.

Line 8c

Enter the amount of unrecaptured Section 1250 gain.

Line 9

Enter the amount of net section 1231 gain or loss.

Line 10

Enter any other income or loss not declared above.

Line 11

Enter the amount of deduction as outlined in Section 179 of the US tax code.

Line 12

Enter any other deductions not declared above.

Line 13

Enter the amount of credits.

Line 14

Check the box provided if Schedule K-3 is attached to this form.

Line 15

Enter the items subject to Alternative Minimum Tax (AMT).

Line 16

Enter the items affecting shareholder basis.

Line 17

Enter any other relevant information.

Line 18

Check the box provided if there is more than one-activity for at-risk purposes.

Line 19

Check the box provided if there is more than one activity for passive activity purposes.

Tips when filling out Schedule K-1 Form 1120-S

Considering the length of the Schedule K-1 Form 1120-S, it is very important to make sure that one is putting the correct and necessary information in each part to avoid any legal issues.

Double-check the information entered. Make sure that you have entered the correct information in the appropriate fields. It may be beneficial to consult the instructions of Form Schedule K-1 Form 1120-S on the IRS website if you require more details on what must be entered in the form.

Practice Good Contract Management. Keep a copy of this form (filled out) in a safe place. This is to make sure that you have a copy of it ready when necessary, whether for legal purposes or simply to serve as a record or backup.