S corporations are pass-through businesses, therefore they don’t have to pay taxes on their own income. Instead, the shareholders receive a pass-through of the income, which they then disclose on their own tax filings. The S corporation must nevertheless continue to submit a tax return in order to declare its earnings, credits, and deductions.
Technically, you can file your own S corporation taxes. It’s crucial to remember that S corporation tax filings can be challenging, particularly if you’re not an expert in tax law. Working with a tax expert is strongly advised if you want to be sure that your return is accurate and submitted properly.
You might be asking if you still need to file a tax return if your S corporation didn’t do anything throughout the tax year. Yes, it is the answer. Even if your S corporation didn’t make any money or incur any costs, you still need to file Form F-1120 to indicate that nothing happened. How can I file a S corp tax return as a result? Your S corporation tax return will be prepared and filed by your tax advisor if you are working with one. However, if you’re doing your own taxes, you’ll need to gather all of your records for the tax year, including Schedule K-1 and records of your income and expenses. From there, you can complete and file Form F-1120 using tax software or in consultation with a tax expert.
In contrast to non-profit organizations, S corporations are not qualified for tax-exempt status. S businesses, however, are able to write off some costs (like charitable contributions) on their tax returns, which can lower their overall tax burden. Working with a tax expert is essential to making sure you’re utilizing all permitted deductions and credits.
The article “Who Must File F-1120?” does not specify the tax rate for a S business.