This article focuses solely on the entry of the Income (or Loss) items which are found on Lines 1 through 10 of the Schedule K-1 (Form 1120-S) Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items. For additional information regarding the requirements for Schedule K-1 (Form 1120S), see: Shareholder's Instructions for Schedule K-1 (Form 1120-S).
To enter the income items from a K-1 (Form 1120S) in Web1040 Pro from the Main Menu of the Tax Return (Form 1040) select:
- Federal Section
- Income Menu
- Other Income
- K-1 Earnings -
- Select 'Begin' next to Schedule K-1 (Form 1120S)
See below basic information on each part of the Income section of the Form 1120S K-1 Menu. For additional information regarding the requirements for Schedule K-1 (Form 1065) see: Shareholder’s Instructions for Schedule K-1 (Form 1120S).
- Line 1 - Ordinary Income/Loss from Trade or Business Activities
- Line 2 - Net Income/Loss from Rental Real Estate Activities
- Line 3 - Net Income/Loss from Other Rental Activities
- Line 4 - Interest
- Line 5A - Ordinary Dividends
- Line 5B - Qualified Dividends
- Line 6 - Royalties
- Line 7 - Net Short-Term Capital Gain/Loss
- Line 8A - Net Long-Term Capital Gain/Loss
- Line 8B - Collectible (28%) Rate Gain/Loss
- Line 8C - Unrecaptured Section 1250 Gain
- Line 9 - Net Gain/Loss under Section 1231
- Line 10A - Other Portfolio Income (Loss)
- Line 10B - Involuntary Conversions
- Line 10C - Section 1256 Contract & Straddles
- Line 10D - Mining Exploration Costs Recapture
- Line 10E - Other Income (Loss)
- Line 11 - Section 179 Deduction
NOTE: This is a guide on entering the Income (Loss) items from Schedule K-1 (Form 1120S) into the Web1040 Pro program. This is not intended as tax advice.
Additional Resources:
Shareholder’s Instructions for Schedule K-1 (Form 1120S)
Form 1040 - Schedule K-1 (Form 1120S) - Overview
Form 1040 - Schedule K-1 (Form 1120S) - Entity Information