Submitted By: Gary
Answered: January 21, 2014 8:30 am

Where do I report income from my corporation on Form 1040?

If you have a C corporation that files Form 1120, you only report compensation (including wages, bonuses, and taxable fringe benefits), dividends, and other taxable distributions received. The corporation itself pays tax on its profits. However, if you have an S corporation, in addition to reporting compensation and dividends, you also report your share of corporate profits on Schedule E of Form 1040. The amount reported on Schedule E is taken from Schedule K-1 issued to you by the S corporation.

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Tax Glossary

Defined contribution plan

A retirement plan that pays benefits based on contributions to individual accounts, plus accumulated earnings. Contributions are generally based on a percentage of salary or earned income.

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