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The amounts from the 2008 Form 1120S (Schedule K-1) do need to be entered into your individual income tax return to report the various types of income listed on the K-1 such as interest, dividends, capital gain and ordinary income.
The ordinary income from line 1 of the K-1 is reported on 2008 Form 1040 (Schedule E) page 2. Be careful that you read the Shareholder's Instructions for Schedule K-1 (Form 1120S) to be sure that any line 1 loss is allowed in the current year.
That is the purpose of the K-1 - to specify the types and amount of income you must report on your individual 1040.