S Corporations

An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. On their tax returns, the S corporation’s shareholders include their share of the corporation’s separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss.

If you are an S corporation use the information in the charts below to help you determine some of the forms that you may be required to file.

Chart 1 – S Corporation

If you are an S corporation then you may be liable for… Use Form…
Income Tax 1120S (S corporation)
Estimated tax 1120-W (corporation only) and 8109
Employment taxes:

  • Social security and Medicare taxes and income tax withholding
  • Federal unemployment (FUTA) tax
  • Depositing employment taxes
941 ( 943 for farm employees)940 or 940-EZ
8109
Excise Taxes Refer to the Excise Tax web page

Chart 2 – S Corporation Shareholders

If you are an S corporation
shareholder then you may be liable for…
Use Form…
Income Tax 1040 and Schedule E
Estimated tax 1040-ES