Multiple K-1 received

Forum|Forum|3 years ago
May 31, 2023
2 replies
8 views

I'm a member of a limited liability partnership; half-way through the year I formed an S-Corp, so I received 2 K-1s from the LLC, one to me in my individual capacity and one to the S-Corp. Oh, and I'm the sole employee of the S-Corp (it's a professional corporation), and I issue a W-2 to myself.

Do I file 2 returns, 1 in my individual capacity and 1 for the S-Corp, or . . . something else?

TurboTax Home & Biz Windows

VolvoGirl

Level 15

Yes you need to file a 1120 S corp return. You need Turbo Tax Business. It is a separate program from Home & Business. It is not available to do online or on a Mac. And it will not do your personal 1040 return.

You can buy the Window's version here…..

https://turbotax.intuit.com/small-business-taxes

dlrowell48Author

Level 2

So I prepare/file a return for the S-Corp using TurboTax Biz, and prepare/file an individual return using TurboTax Home & Business? 2 returns?

DoninGA

Level 15

@dlrowell48 Correct. A Form 1120-S for the S Corp and a Form 1040 for your personal tax return.

rjs

Level 15

The Form 1120-S tax return for the S corp will include a Schedule K-1 for you as the shareholder (i.e. owner). You have to enter the information from that Schedule K-1 in your personal Form 1040 tax return, in addition to the K-1 from the LLC.

You said you are the only employee of the S corp, but you did not say that you're the only shareholder. If there are other shareholders, the 1120-S will include a K-1 for each shareholder.

dlrowell48Author

Level 2

Yes, I am the only employee AND the only owner, I am (was) a partner in an LLP, I formed a professional corporation (PC) and substituted it for myself as the partner in the LLP, so now all partnership distributions come to the PC, and I am the only employee of the PC.

In the first year after forming PC (it was created mid-year), I received 2 K-1s, 1 to me individually and 1 to the PC. In each subsequent year a single K-1 was received, to the PC. I also receive a W-2 from the PC.

I'm uninformed regarding these issues but was told there were some tax/Social Security advantages to doing things this way. Tax advice is, of course, beyond the scope of any advice here, my inquiry was more limited, "do I file 2 returns or what?" Your responses have been very helpful in sorting this out, much appreciated.