Article: 50059

If you are a shareholder in an S corporation (files Form 1120-S), you will receive Schedule K-1 and you will need to report that information on your return (Form 1040). Schedule K-1 is used to report your share of the S corp’s income, credits, deductions, etc.

Entering Schedule K-1

To add Schedule K-1 from Form 1120-S follow the steps below.

1. Click on the Review tab on the left of the screen in the Federal taxes section.
2. Click the link I’d like to see the forms I’ve filled out or search for a form.
3. Click on the Income tab.
4. Click on Schedule K-1 for 1120-S to add and open the form.
   • Alternatively, search for Schedule K-1 in the search box and click Add Form beside Schedule K-1 for 1120-S.
5. Enter in your applicable information.
6. Click Save.

Form 7203 Basis Worksheet

Form 7203 is required if you were issued a Schedule K-1 S Corporation who meets the form filing requirements mandated by the IRS. Per the IRS instructions, Form 7203 is required to be filed by S Corporation shareholders who:

• Claimed a deduction for their share of an aggregate loss from an S corporation (including an aggregate loss not allowed last year because of basis limitations),
• Received a non-dividend distribution from an S corporation,
• Disposed of stock in an S corporation (whether or not gain is recognized), or
• Received a loan repayment from an S corporation.

For further information on Form 7203 see the Instructions for Form 7203.

As you enter your income, expenses, deductions, etc. that were reported on the Schedule K-1, use the Basis Wkst or Basis Wkst cont. (7203) tabs to enter your applicable basis information for the Schedule K-1 from Form 1120-S.

Code Not Available

If the code is not available on the entry screen, you will need to determine if the amount should be reported elsewhere, or if it is just an informational value that does not need to be entered on your return. See the Shareholder’s Instructions for Schedule K-1 (Form 1120-S) for assistance.