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CB31
New Member

Schedule K1 17c 2019 Distributions to Shareholders - How do I answer this?

I'm stumped on this question and not sure if I'm answering it correctly.

 

"Enter the amount of cash and property distributed to this shareholder in 2019"

(When this question is answered, it shows up under Schedule K, 17c, Dividend distributions paid from accumulated earnings and profits)

 

So, here is what is throwing me.   Every March when I file my 1120-S for my S Corp, I get my final dollar amount of my ordinary business income on my K1, and then at that time, I write myself a check for that dollar amount, as the sole shareholder of the small business S Corp.     Then that dollar amount gets applied to my personal taxes as my K1 income and I pay those taxes in April a month later. 

 

So in March of 2019, I wrote myself a check for what my tax year 2018 K1 said.   This was applied to 2018 personal taxes and is a done deal, taxes have been paid on it already, as of April 2019.

 

So, do I answer the above question being asked by TurboTax with the 2018 K1 dollar amount that I wrote myself a check for in March of 2019, even though I already paid taxes on it for 2018?   Or do I leave that question blank?  Or do I write the amount I'm about to write myself a check for based on 2019 K1 that will be determined when these 2019 taxes are completed?

  

I don't recall this question coming up in the past.   Need to know in a couple days and the IRS says they are no longer staffing the phone with an agent to ask this question.

 

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1 Reply
DianeC958
Expert Alumni

Schedule K1 17c 2019 Distributions to Shareholders - How do I answer this?

Distributions made to shareholders is any money or property that was given to a shareholder above the wage amount they were paid during the year.

 

This amount is not the amount of profit you will be taxed on because they could be two different amounts.  The amount you are taxed on shows in Box 1 of your K-1.

 

You are taxed on the income of the S-Corp whether you take the money out or not. 

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