S-Corp earnings are taxed in the year they are earned. The "retained earnings" balance is not reported and taxed again on your personal return when you dissolve the S-Corp.
All you need to report on your personal return is the information on the 2020 Schedule K-1 from the S-Corp, making sure that you indicate this is a final K-1 (see below).
The Schedule K-1 will report your share of current year earnings, deductions and credits.
To report the K-1 on your personal return:
- Down the left side of the screen, click on Federal.
- Across the top of the screen, click on Income & expenses.
- Under Your income and expenses, scroll down to Schedule K-1 and click Edit/Add to the right.
- At the screen Tell us about your Schedule K-1, you tell the software which Schedule K-1 you received.
- For several screens, you will be entering data right off the K-1 form.
