S-corp income reported twice? - Tax Forum - Tax Help Forum, Payroll Tax Forum, Business Tax Forum, Tax Questions, Free Tax Advice

mrfisherman2010 · 02-16-2010, 07:00 PM

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My wife and I file a 1040, married filing jointly. We have an s-corporation that is showing a small profit for the first year, $3000. We each own 50% of the corporation. I run the business while my wife plays no part in the daily activities.

It seems like we are reporting our business income twice:

1. First on line #12 of 1040 (Business income from Schedule C) which is $3000.

2. And again on Schedule E Part II (income from s-corp) line #32 by reporting the amounts from our K-1 ($1500 each). This total ($3000) is carried forward to line #17 of the 1040 (Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E).

Is this correct or should I not complete Schedule E Part II?

Thanks for the help.

Mike

skier_j · 02-16-2010, 07:49 PM

why are you preparing a sch c?

mrfisherman2010 · 02-16-2010, 08:04 PM

Quote:

Originally Posted by skier_j

why are you preparing a sch c?

Looking over the instructions, I see that schedule c is for sole proprietorship. I guess that explains it. I shouldn't be filling out this form since we have an s-corp.

I'm using TurboTax and I don't remember it making this clear. I'll go back and look it over again.

Thank you.