Where does an S-Corp report last year's Telephone Excise Tax credit?

This question is about a corporate income tax form. Please don%26#039;t answer if you are not familiar with it.

Also--individuals: That refund is *not* taxable income for you so don%26#039;t worry about it. It is for a business because in the past the tax increased the expense, and reduced their income and therefore their taxes. Now if some is refunded it has to get taxed.

Anyway, the credit was created by filing form 8913 along with last year%26#039;s (FY 2006) 1120S and reported on it but the refund took place in 2007. Does it just get put down as %26quot;Other Income%26quot; ?

That seems likely but then I also thought I read somewhere that some of it was considered interest income and with an S-Corp that would always have to get reported to stockholder(s) separately. Any truth to that? I didn%26#039;t get a 1099 on this (amount was just about $109).

Where does an S-Corp report last year%26#039;s Telephone Excise Tax credit?

Just report it as other income on page 1 of Form 1120S. It is not a separately stated K-1 item.

You would not get a 1099 for that.

Where does an S-Corp report last year%26#039;s Telephone Excise Tax credit?

You can call it other income or you can just reduce the telephone expense. Doesn%26#039;t really matter either way.

True, some of the refunded credit was interest though I%26#039;m not sure if a 1099 was issued by the IRS. My advice is not to sweat it - it%26#039;s 100 bucks who cares kinda deal. I%26#039;m sure you have bigger things to worry about than splitting ordinary income between box 1 and box 3 (or is it 5? I don%26#039;t remember).

Hope this satisfies your question.