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ProWeb – Form 1040 – Schedule K-1 (Form 1120S) Income

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 Keystone Tax Solutions 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)

Rents, Royalties, Entities (Sch E, K-1, 4835, 8582)

K-1 Input – Select New and double-click on Form 1120-S K-1 (S Corporation) which will take you to the K-1 Heading Information Entry screen. If the initial K-1 entry was previously keyed in, double click on the entry in the K-1’s pick list.

  • 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 

For more information on the categories about click here.

For more information about the Section 179 Deduction click here.

NOTE: This is a guide on entering the Income (Loss) items from Schedule K-1 (Form 1120S) into the Keystone Tax Solutions program.  This is not intended as tax advice.


Additional Resources:

Shareholder’s  Instructions for Schedule K-1 (Form 1120S)

ProWeb – Form 1040 – Schedule K-1 (Form 1120S) – Overview

ProWeb – Form 1040 – Schedule K-1 (Form 1120S) – Entity Information

ProWeb – Form 1040 – Schedule K-1 (Form 1120S) – Deductions

ProWeb – Form 1040 – Schedule K-1 (Form 1120S) – Credits

Updated on September 8, 2020

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