1120-S
1120-S - U.S. Income Tax Return for an S Corporation
Hey there! 👋 Need help with Form 1120-S? Filing your corporate taxes doesn't have to be stressful. Our team of experts can guide you through the process, ensuring you file accurately and on time. Let's simplify your tax returns together.
Understanding Form 1120-S
Form 1120: Your Corporation's Financial Snapshot
Think of Form 1120 as a detailed financial report card for your corporation. It provides a comprehensive overview of your business's performance, including income, expenses, and overall financial health.
Here’s a quick breakdown:
✓ Annual Filing: Typically due by March 15 of the following year.
✓ Income and Deductions: Reports income sources (sales, interest, dividends, capital gains) and expenses (salaries, rent, utilities, supplies).
✓ Tax Calculation: Determines your corporation's tax liability based on income and deductions.
✓ Estimated Taxes: Includes any estimated taxes paid during the year.
✓ Refund or Payment: If you overpaid, you'll receive a refund. If you owe more, you'll need to make a payment.
Who Should File Form 1120-S?
If your business is structured as an S corporation, you'll need to file Form 1120-S for your corporate tax returns. Unlike Form 1120, which is used by C corporations, S corporations pass their profits and losses directly to their shareholders, avoiding double taxation.
Key Information Included in Form 1120-S
Form 1120-S is the tax return used by S corporations in the United States. Unlike C corporations, which are subject to double taxation, S corporations pass their profits and losses directly to their shareholders. This means that S corporations avoid paying corporate income tax. However, shareholders are still responsible for paying individual income tax on their share of the corporation's profits. To accurately complete Form 1120, you'll need to gather the following information:
Corporation Information:
✓ Name of the corporation
✓ Employer identification number (EIN)
✓ Business address
✓ Tax year covered by the return
Income:
✓ Gross receipts from sales
✓ Interest income
✓ Dividend income
✓ Rental income
✓ Capital gains and losses
✓ Other income
Deductions
✓ Cost of goods sold
✓ Salaries and wages
✓ Rent
✓ Utilities
✓ Depreciation
✓ Charitable contributions
✓ Interest expense
✓ Taxes
✓ Other business expenses
Tax Credits
✓ Research credit
✓ Qualified small business credit
✓ Other eligible tax credits
✓ Taxable Income
✓ The corporation's taxable income after accounting for all income, deductions, and credits
Schedule M-1
✓ A reconciliation of income per books and taxable income
Schedule M-2
✓ A reconciliation of beginning and ending balances of certain accounts
Note:
S Corporation Status: Ensure that your corporation is officially designated as an S corporation.
Shareholder Information: You may need to provide information about your corporation's shareholders for Schedule K-1 purposes.
Professional Guidance: If you're unsure about any aspect of Form 1120-S, it's recommended to consult with a tax professional.
Remember: The specific information required on Form 1120-S may vary depending on your corporation's unique circumstances. Always refer to the most recent IRS instructions for the most accurate guidance.
Filing Deadlines and Extensions
General Deadline:
While the general due date for Form 1120-S is March 15 of the following year (for calendar-year corporations), there are some exceptions and extensions that may apply.
Extensions:
Automatic Extension: S corporations can automatically extend their filing deadline to October 15 by filing Form 7004.
Additional Extensions: In certain cases, corporations may be eligible for further extensions beyond October 15. However, these extensions typically require a valid reason and may involve penalties if not granted.
Important Note:
Payment Deadline: An extension to file Form 1120-S does not extend the deadline for paying any taxes that are due. If you owe taxes, you must still pay them by the original due date, even if you've filed for an extension.
Filing Tips for Millennials and Gen Z
- ✓ Don't wait until the last minute! April 15th rolls around faster than you think.
✓ Gather your documents beforehand. ✓ Profit and loss (P&L) statement ✓ Balance sheet ✓ Form 1065 from the previous tax year.
✓ Use simpple.tax to file your taxes and maximize your refund.
✓ Use simpple.tax to keep your tax docs and returns in one secured place.
✓ Use simpple.tax to access tax pros year-round, including assistance with tax planning, audits, or questions you may have.
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Related Terms & Shoutout
Form 1120-S Nicknames & Related Terms
S Corporation Tax Return, S Corporation Income Tax. S Corporation Tax Filing, S Corporation Deductions
S Corporation Credits, S Corporation Tax Refund, Minimize S Corporation Tax Liability.
Shoutout! 📣📣 Filing your S corporation's taxes can be a bit simpler than for C corporations, but it's still essential to ensure accuracy and compliance. With careful planning and the right information, you can successfully navigate Form 1120-S.
Sources and related content
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