2018-2024 Form

When the Schedule K-1 (Form 1120-S) is Needed?

Every year, flow-through business entity shareholders or partners should file the Schedule K-1, among other necessary forms, during tax season.

According to the Department of the Treasury, both S-corporations and partnerships are not obligated to pay income taxes. This obligation is imposed on partners or owners who, based on their share of interest and profits, include these taxes in their personal returns.

Partnerships and corporations fill in their own federal return and each co-owner fills in the corresponding Schedule K-1 form and displays the figures from this document in their own Form 1040.

Since all corporate profits are distributed among shareholders, the business owners themselves must pay their dues, and this record reflects their shares.

How to Prepare the S Corp Schedule K-1?

For your assistance, you can follow the steps below to make your form-filling process easier with airSlate SignNow:

1. Open the template in one-click. A secure connection will be established automatically.
2. You will find the PDF file ready to edit.
3. Move from field to field with the help of the Edit & Sign tools.
4. Provide the corporation contact information and IRS Center name in Part I.
5. The shareholder’s data should be represented in Part II.
6. In Part III, you are not obligated to fill out all fields - only those that apply to you.
7. Save or send once the Form K1 is completed.

The form consists of two pages: the first one for filling in the information and the second with additional data and statements.

So, if you have all the numbers of corporate income/losses for the current year, credits, dividends, deductions, etc., you can complete the document in a few minutes with our template.