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S-corp distributions and a K-1
My law firm is run as a S-Corp. I own 100% of the stock. When I entered the business income on the Sch C - I did not include distributions to myself, therefore the business income reported on my 1040 includes the distribution amounts. If I then fill out a K-1 for the distributions, it doubles my income reported, therefore also my taxes. Should I be reporting this differently? I originally did not fill out a K-1...do I need one if I am reporting the income?
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S-corp distributions and a K-1
An S-Corp is a 100% separate entity from your personal return. You do need to fill a corporate return for it. The TurboTax product which can file for S-Corp is TurboTax Business.
As part of the business return there will be a K-1 generated which is used on your personal return.
How to add K-1 to your personal return if you haven't filed yet:
- Open (continue) your return in TurboTax, if it's not already open.
- In your TurboTax program, search for K-1 or K1 (lower-case works too) and then click the "Jump to" link in the search results.
- This will take you to the Schedules K-1 or Q screen. Answer Yes and follow the prompts. (see Thumbnail #1)
- Note: You may be prompted to upgrade to Premier, depending on which version of TurboTax you're in.
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S-corp distributions and a K-1
An S-Corp is a 100% separate entity from your personal return. You do need to fill a corporate return for it. The TurboTax product which can file for S-Corp is TurboTax Business.
As part of the business return there will be a K-1 generated which is used on your personal return.
How to add K-1 to your personal return if you haven't filed yet:
- Open (continue) your return in TurboTax, if it's not already open.
- In your TurboTax program, search for K-1 or K1 (lower-case works too) and then click the "Jump to" link in the search results.
- This will take you to the Schedules K-1 or Q screen. Answer Yes and follow the prompts. (see Thumbnail #1)
- Note: You may be prompted to upgrade to Premier, depending on which version of TurboTax you're in.
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S-corp distributions and a K-1
? WHY ARE YOU FILING AN SCH C FOR BUS DO NOT. YOUR SCORP SHOULD FILE BY ITSELF GENERATING A K-1 WHICH IS PROFIT OR LOSS OF SCORP TO FILE WITH 1040 FRONT PAGE UNDER SCORP PROFIT OR LOSS. THIS IS YOUR INCOME FROM BUS.
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