We have an S-corp and therefore TurboTax outputs a K-1 form for both my wife and I (we are the only two shareholders). The K-1 indicates a positive amount of money in the corp, but we have not taken any of this amount in the form of dividends. Do we still need to file the K-1 forms and pay tax on this amount in our personal income tax filing? Is this amount, even though we have not receieved it personally, still treated as our personal income and taxed at our standard rate? Thanks for your help!
John Wilson
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