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Level 1
December 1, 2021
Question

Why is the Passthrough K-1's S-Corp Info that I entered for one of our clients shows up as taxable in his 1040? How do I make it not taxable?

  • December 1, 2021
  • 2 replies
  • 14 views
The K1 is his company and he's an employee.
I entered the K1 details to file his individual tax return.
Should it be really showing as taxable in his tax return?
Thank you for answering!
This topic has been closed for replies.

2 replies

George4Tacks
Level 15
December 1, 2021
Either you (a) prepared the 1120S incorrectly or (b) You entered the k-1 incorrectly or (c) you did everything correctly and that income is taxable.
You did not post nearly enough information for anyone to know what the answer is.
Answers are easy. Questions are hard!
IRonMaN
Level 15
December 1, 2021

I'm curious again today.  If a Sub S return was prepared showing that it had net income, why are you thinking that it wouldn't be taxable on the shareholder's return?

Slava Ukraini!
George4Tacks
Level 15
December 1, 2021
It's a good thing you are not a cat. You know what happens to curious cats.
Answers are easy. Questions are hard!
IRonMaN
Level 15
December 1, 2021

I'm safe.  Nothing would kill me just before the start of tax season ---------- it would be too merciful.

Slava Ukraini!