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2024 will be my second tax return for my s-corporation.

On March 2024 I paid income tax of $389 for 2023.

Do I need to include $389 in 1120s line Taxes and license when i will fill 2024 tax return?

2 Answers 2

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When in doubt - go to the instructions. See the instructions for Form 1120S Line 12:

Don't deduct the following taxes on line 12.

  • Federal income taxes (except for the portion of built-in gains tax allocable to ordinary income) or taxes reported elsewhere on the return.

...

  • Taxes not imposed on the corporation.

...

So no, Federal income taxes paid for the prior year are not a deductible expense for the corporation.

Also, worth mentioning that S-Corp is a pass-through entity and will only pay income taxes in a very exceptional situation which is unlikely to be your case. I suspect when you say "I paid income tax", you literally mean yourself, on your individual tax return. As such - that's not even an expense to the corporation, deductible or not - it's your personal expense.

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  • It is not federal, it is California I come tax Commented May 28 at 4:09
  • @NataliaBoiko then maybe mention that in the question? State income tax is deductible.
    – littleadv
    Commented May 28 at 16:09
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No. Federal taxes are not deductable from federal taxes, though some kinds of state and local taxes may be. The money you owed last year has little effect on what you need to do this year, except in how it affects the "safe harbor" provisions if you under-withheld.

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