- Open your return, locate Business Info in the menu and select Shareholder Information.
- Follow the screen prompts and answer the questions as they apply to your business.
- On the screen, Did [YOUR BUSINESS NAME] distribute any money or property to shareholders during the tax year, excluding salaries, loans, and profits from Sch K-1?, select Yes, the business made distributions to shareholders during the tax year.
- On the screen Enter the total amount of distributions made during the tax year, enter the TOTAL amount of cash and/or property paid by the company to the shareholders. TurboTax will allocate these amounts to shareholders according to their ownership percentages.
Contributions to an S -Corporation are not reported on Schedule K-1. Instead, TurboTax prepares a Shareholder Stock and Debt Limitations Worksheet that is provided with each Schedule K-1.
- Open your return and, in the menu, select Tax Tools and select Forms.
- Search for and select S Corporation Information Worksheet.
- Navigate to Part IV – K-1 Information
- Locate the question Calculate and print Shareholder's Stock and Debt Basis Limitations Worksheet?, and select Yes.
- Locate QuickZoom to Shareholder Stock and Debt Basis Limitations Worksheet and select Quick Zoom.
- Select the Schedule K-1 of the shareholder you’d like to edit from the pop-up selections.
- Navigate to Part I Shareholder Stock Basis.
- On Line 2, edit the contributions made during the year.
- Select the back arrow and repeat steps 5-8 to edit the contributions for any remaining shareholders.
- When complete, select Close Forms.
For more information on individual items that affect basis, see IRS S corporation stock and debt basis.