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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I own shares of a small corporation. Do I report on my tax

Resolved Question:

I own shares of a small corporation. Do I report on my tax return?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

What type of corporation is it that you own?

Is it a C Corporation, S Corporation, Partnership?

Did you receive a K-1 form from the corporation?

Customer: replied 8 years ago.
share in an S Corp. I haven't recieved anything. Should I have?
Expert:  Merlo replied 8 years ago.
Hello again,

Do you actively work for the company and receive wages?

Has the company paid out any earnings to you at all?

What percentage of the shares do you own?

Customer: replied 8 years ago.
Yes, I'm a w-2 employee. I own 30% of issued shares
Expert:  Merlo replied 8 years ago.
Hello againCustomer

The S Corporation itself does not pay taxes. It files an informational return only on from 1120-S, but the income from the S Corp flows through to the shareholders in the form of wages and/or dividends.

The wages that were reported to you on the W-2 form should be reported on your tax return the same as any other wages you would have earned from another company. However, the S Corp should have also issued you a K-1 form to report your share of any profit or loss that the corporation had, and this profit or loss would also be reported on your personal tax return.

S Corporations have until March 15th to furnish the K-1 forms to shareholders, so it is possible they just have not yet completed the K-1 forms, but you should be receiving a K-1 form, and the information from that form will also need to be reported on your personal tax return.

These are the only reporting requirements for you as a shareholder.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.
Merlo and 4 other Tax Specialists are ready to help you
Customer: replied 8 years ago.