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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?

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!
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4 Comments 4
George4Tacks
Level 15
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.

Here's wishing you many Happy Returns
IRonMaN
Level 15

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
It's a good thing you are not a cat. You know what happens to curious cats.

Here's wishing you many Happy Returns
IRonMaN
Level 15

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


Slava Ukraini!