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Level 1

Where does my s-corp profit/loss get input to my personal 1040 tax form?

i dont see which personal tax form is used to book my s-corp net profit/loss. I seem to recall that the Sch A used to trap this amount but I dont recall how the flow from the s-corp tax return got into my personal Sch A.

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Level 1

Where does my s-corp profit/loss get input to my personal 1040 tax form?

When you complete the Form 1120S in TurboTax Business, you will generate a Form K-1 for each shareholder in the S Corp. This K-1 becomes the input document by which you carry your share of profit (loss) and other tax attributes from the S Corp to your Form 1040 individual income tax return.

In any of the TurboTax personal tax products, under the Wages & Income section, select I'll choose what I work on.

On the Your 2018 Income Summary screen, scroll down to Business Items and click the Start button next to Schedules K-1, Q. Enter the items from your Form K-1, as directed.

This will result in populating the correct fields on Schedule E, so that your S Corp income is included in your tax return.

6 Replies
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Level 1

Where does my s-corp profit/loss get input to my personal 1040 tax form?

When you complete the Form 1120S in TurboTax Business, you will generate a Form K-1 for each shareholder in the S Corp. This K-1 becomes the input document by which you carry your share of profit (loss) and other tax attributes from the S Corp to your Form 1040 individual income tax return.

In any of the TurboTax personal tax products, under the Wages & Income section, select I'll choose what I work on.

On the Your 2018 Income Summary screen, scroll down to Business Items and click the Start button next to Schedules K-1, Q. Enter the items from your Form K-1, as directed.

This will result in populating the correct fields on Schedule E, so that your S Corp income is included in your tax return.

Level 6

Where does my s-corp profit/loss get input to my personal 1040 tax form?

Can you expand then on how in the personal turbo tax (e.g. home and business) I would enter my business that is a S corp? Or do I just "pretend"(treat as)  for my 1040 that I am just the employee (not owner) of the S-corp employee (and record any distributions from Scorp as shareholder from K-1 on Schedule E/C)

 

Just not sure how to combine the reality of the LLC classified as S corp into the turbotax home and business to get my 1040 aligned with the business turbotax K-1that the S-corp files along with 1120s

Level 20

Where does my s-corp profit/loss get input to my personal 1040 tax form?


@newllc19 wrote:

...I am just the employee (not owner) of the S-corp employee (and record any distributions from Scorp as shareholder from K-1 on Schedule E/C)


In TurboTax Home & Business, you enter all of the information from your K-1 (1120-S) and also the information from the W-2 you received (or probably should have received) as an employee of the S corporation.

 

I am assuming you prepared (or you had someone else prepare) the 1120-S for the corporation (or, more precisely, the LLC treated as an S corporation for federal tax purposes) and you were issued a K-1.

Level 6

Where does my s-corp profit/loss get input to my personal 1040 tax form?

Yes I will be or having the 1120s prepared for the Scorp (use turbo tax business or the "other guys").

Can you expand then on how in the personal turbo tax (e.g. home and business) I would enter my business that is a S corp? Or do I just "pretend"(treat as)  for my 1040 that I am just the employee (not owner) of the S-corp employee (and record any distributions from Scorp as shareholder from K-1 on Schedule E instead of as a "business" as tt home and business does for sole prop into a schedule C)

 The issues is i will have income from both onother emplyer (w2, personal income), my scorp (w2, distributions per K1,  presumably only into Sched E) and sole proprietorship (Schedule C).  When going through step by step in personal turbotax (premierSE or home&business), do I enter my S-corp as "my business" at all? Seems if i do it goes to schedule C which it shouldn't. So I am think I just for purposes of TT and my personal taxes, I just ignore (at least in terms of business step by step) my S corp and ONLY import the Scorp info that I "get" from the S corp (K1).

 

Level 20

Where does my s-corp profit/loss get input to my personal 1040 tax form?

Where does my s-corp profit/loss get input to my personal 1040 tax form?

Absolutely nowhere on your *PERSONAL* 1040 tax return.  The S-Corp will report it's own gains and losses on it's own 1120-S tax return. Then the S-Corp will issue you a K-1 that will show your "PERSONAL" gains and losses from/to the S-Corp. You'll enter that K-1 into your personal 1040 tax return when you get to that point in the program where it asks if you have any K-1's to enter.

Remember, an S-Corp is considered a physically separate entity. Therefore the S-Corp reports it's own losses and gains completely separate from your personal losses and gains. In fact, it's perfectly possible for the S-Corp to have massive gains and for you to have losses. The opposite is also true.

Level 20

Where does my s-corp profit/loss get input to my personal 1040 tax form?

Basic instructions for using the Home & Business version :

 

In the Business tab you will ONLY enter the Sch C income/expenses if you have a totally separate sole proprietor company to report.

 

Then in the Personal tab you will enter all other personal income like the W-2 and K-1 forms.  You will NOT enter anything else from the S-corp return other than the K-1.