If you are a shareholder within an S-corporation, the S-Corporation must file its own tax return on Form 1120-S U.S. Income Tax Return for an S Corporation, which is due on March 15th for calendar year filers.

TaxAct^® supports the Form 1120-S return and the individual Form 1040 U.S. Individual Income Tax Return. You can obtain additional information and order both programs at www.TaxAct.com.

An S-corporation is a pass-through entity, meaning it will pass all income to each shareholder to report on their individual income tax return. When the S-corporation return is prepared, it must produce a Schedule K-1 (Form 1120-S) Shareholder’s Share of Income, Deductions, Credits, etc. for each shareholder. This K-1 is reportable on the individual’s personal income tax return. Generally, an S-Corporation will only be taxed at the business level when they switch from being a Corporation to an S-Corporation; however, there are other situations in which an S-Corporation may be taxed (and it does not flow through to the shareholders).

To enter the Schedule K-1 data in the Business Income section of the TaxAct 1040 program:

1. From within your TaxAct return, click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click the Business Income dropdown, then click S Corporation income (Form 1120S Schedule K-1).
3. Click + Add S Corporation Schedule K-1 to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
4. Continue with the interview process to enter your information.