Minnesota forms: • Form M4, Corporation Franchise Tax Return : Main Minnesota corporate form • Shareholder reporting: Dividends included in federal taxable income reported on Form M1, Individual Income Tax S Corporation Federal forms: • Form 1120-S , U.S. Income Tax Return for an S Corporation • Schedule K-1 (Form 1120-S) : Shows each shareholder's share of income, deductions, and credits • Generally no separate corporate tax: Income passes through to shareholders • Shareholders report their share: On individual Form 1040 using Schedule K-1 information Minnesota forms: • Form M8, S Corporation Return: Main Minnesota S corporation form • Taxes the S corporation may pay: o Minnesota S Corporation Taxes (only if paying federal income tax) o Minnesota Minimum Fee o Minnesota Composite Income Tax (optional) o Withholding for nonresident shareholders o Pass-Through Entity (PTE) Tax (optional election) • Schedule KS, Shareholder’s Share of Income, Credits and Modifications: Shows modifications to federal income for Minnesota purposes • Schedule KS for composite tax: Used when S corporation pays Minnesota tax on behalf of nonresident shareholders • Form M8, S Corporation Return: Reports withholding for nonresident shareholders • Shareholder reporting: Complete Form M1, Individual Income Tax using Schedule KS information Note : Refer to the Minnesota Department of Revenue Nonresident Withholding information.
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