• S Corporation
  • 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.
    • An S corporation generally is exempt from federal income tax.
    • Its shareholders include on their tax returns their share of the corporation’s separately stated items of income, deduction, loss, and credit, and their share of non-separately stated income or loss.

Line (Form 1120-S with Schedule K-1 and personal return)

• The worker must determine what part of the S-Corporation belongs to the client by reviewing the percentage owned by the client that is shown in Part II Line F of Schedule K-1.
  • The worker considers that percentage of the countable income and allowable expenses for the person.
  • The worker uses the percentage of the business owned by the client shown in Part II Section F on this form to determine the percentage of the gross income and allowable expenses shown on Form 1120S to consider for the person.
• Part II, Section F, is the percentage of the client’s ownership in the S-Corporation.

• The worker enters the appropriate self-employment income and business expenses in those fields for all programs.
  • The worker also enters information in the Non-TANF Work Expense and General Income Exclusion fields when approving for SoonerCare (Medicaid) related to ABD.
  • If the client has rental income that is considered unearned income, it is entered in the ‘Other’ line.
  • If the client is managing the property at least 20 hours per week, the worker enters the income in the self-employment and business expenses fields.