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Interactive Worksheet  ·  Tax Year 2025

Complete your Form 1120-S return

Fill in your S corporation's figures below — every total, allocation, and diagnostic check recalculates as you type. Nothing is sent anywhere; your entries are saved locally in this browser so you can leave and pick back up later. Everything starts at zero — fill in only what applies to your business, step by step.

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Don't want to enter everything by hand?

Upload your prior-year return to prepopulate some details, plus this year's documents and financial statements — our preparers (and soon, automatic document scanning) will take it from there.

Step 1

Shareholder information

Add up to five shareholders. Ownership is a single pro-rata percentage of shares outstanding — unlike a partnership, there's no separate profit %, loss %, and capital % to track; S corps must allocate every item the same way, strictly by shares held. Entity types are restricted to those eligible to hold S corp stock (individuals, qualifying trusts, estates, and certain exempt organizations — never a corporation or partnership).

More than 5 shareholders? Fill in the first five here and contact us for the rest — remember, S corps are capped at 100.
Name Entity type Officer? Shares held Ownership %
Total 0 0.00%

S corporations are limited to 100 shareholders and generally one class of stock, with restrictions on who may own shares — see the Checks section below for a live eligibility read based on what you enter here.

Step 2 · Form 1120-S, page 1

Income & deductions

Compensation of officers (line 7) is its own deduction line, separate from salaries and wages (line 8) — it's paid as ordinary W-2 wages and never touches a shareholder's K-1.

$
$
$0
$
$0
$
$
$0
$
$
$
$
$
$
$
$
$
$
$
$
$
$0
21Ordinary business income (loss) $0
Step 3

Schedule K — shareholders' pro rata share items

Line 1 pulls automatically from page 1. There's no guaranteed-payments line and no self-employment-earnings line on an S corp's Schedule K — pass-through ordinary income is never subject to SE tax for a shareholder. Enter everything else your corporation has for the year.

$0
$
$
$
$0
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$0
Automatic

Schedule K-1 allocation

Every Schedule K line split across your shareholders by ownership percentage — the same single ratio for income, deductions, and distributions alike. Nothing to enter here; this updates as you fill in the sections above. Compensation of officers is never allocated — it's already baked into ordinary business income as a page-1 deduction, paid to the officer separately via W-2.

Line item
Step 4

Schedule L — balance sheet

Beginning and end of tax year, per your books. The equity section uses the S corp stack — capital stock, additional paid-in capital, retained earnings, and adjustments — not a single "partners' capital" line.

BeginningEnd
Total assets $0 $0
22Capital stock
$
$
23Additional paid-in capital
$
$
24Retained earnings
$
$0
25Adjustments to shareholders' equity
$
$
26Less cost of treasury stock
$
$
Total shareholders' equity $0 $0
Total liabilities & equity $0 $0

Retained earnings (book) and ending AAA on Schedule M-2 (tax) are different numbers by design — AAA is a tax-basis running total built from taxable income only; retained earnings is a book/GAAP figure. They are not expected to match.

Step 5

Schedule M-1 — reconciliation of income

Ties your book net income to the ordinary income reported on Schedule K. There's no guaranteed-payments add-back here — S corps don't have that line.

$
$0
$0
$0
$
$0
$0
8Income (loss) — line 4 less line 7 $0
Step 6 · Automatic

Schedule M-2 — AAA, PTI, AE&P & OAA

Entity-level, not per-shareholder — four named accounts tracked once for the whole corporation. This is the single biggest structural difference from a partnership's Schedule M-2, which rolls capital forward per partner. Only the beginning balances (row 1) are entered by hand; everything else derives from Schedule K above.

Line item (a) AAA (b) PTI (c) AE&P (d) OAA
1  Balance at beginning of tax year $0 $0
2  Ordinary income from page 1, line 21 $0 $0 $0 $0
3  Other additions $0 $0 $0 $0
4  Loss from page 1, line 21 $0 $0 $0 $0
5  Other reductions $0 $0 $0 $0
6  Combine lines 1 through 5 $0 $0 $0 $0
7  Distributions $0 $0 $0 $0
8  Balance at end of tax year $0 $0 $0 $0

PTI and AE&P stay at $0 for most S corporations — a company that has always been an S corporation carries no accumulated earnings & profits, and PTI is a legacy pre-1983 concept most corporations no longer carry. Both columns still exist on the official form and are shown here for completeness. Distributions draw first against AAA and cannot push it below zero in the year they're paid.

Step 7

Shareholder stock basis (Form 7203)

A separate, illustrative per-shareholder tracker — off the K-1 and off Schedule M-2 entirely. Each shareholder computes their own stock basis on their own Form 7203, attached to their Form 1040, not to this return. Basis limits how much loss a shareholder can currently deduct and determines whether a distribution is tax-free or produces gain. Only the beginning-basis figures are entered by hand; the rest follows each shareholder's ownership % applied to the Schedule K income, deduction, and distribution lines above.

Shareholder Beginning basis + Share of income − Share of deductions − Share of distributions Est. ending basis Distribution ≤ basis?
Diagnostics

Everything should read $0, 100%, or green

These confirm the return is internally consistent before it goes to your preparer.