1120-S

Shareholders’ Pro Rata Share Items—International

Agency
IRS
Revision
2025
Fillable fields
2078
Pages
14
Official source
IRS form page
Checked
October 21, 2026
Fill 1120-S online
Page 1 of form 1120-S

Schedule K-2 (Form 1120-S): Shareholders' Pro Rata Share Items, International

Schedule K-2 (Form 1120-S) is Shareholders' Pro Rata Share Items, International. The About Form 1120-S page says it is an extension of Form 1120-S, Schedule K, used to report items of international tax relevance from the operation of an S corporation. The form says to attach it to Form 1120-S.

The S corporation completes it. Item A at the top asks which of Parts I through VII apply, and each part answered Yes is completed and attached. Each shareholder's share of these items is reported on Schedule K-3 (Form 1120-S).

This page covers the 2025 schedule. You can fill it out free in your browser on this page and download it without an account.

What's on Schedule K-2 (Form 1120-S)

Item A and Part I

Item A asks which of Parts I to VII apply. Part I, the corporation's other current year international information, has 13 boxes for attachments such as gain on personal property sale, foreign oil and gas taxes and Form 5471 information.

Part II: foreign tax credit limitation

Section 1 lists gross income on lines 1 to 24 and Section 2 lists deductions on lines 25 to 54, by U.S. source, foreign branch, passive, general and other category income, and income sourced by shareholder.

Part III: information for Form 1116

Section 1 has R&E expenses apportionment factors, Section 2 interest expense apportionment factors, and Section 3 foreign taxes paid or accrued, reductions of taxes and foreign tax redeterminations.

Part IV: distributions from foreign corporations

The name, EIN or reference ID number, date of distribution, functional currency and amount of each distribution from a foreign corporation to the S corporation.

Part V: section 951(a)(1) and 951A inclusions

Information by controlled foreign corporation (CFC) on shareholders' section 951(a)(1) and section 951A inclusions, such as the aggregate share of subpart F income and tested income, by separate category.

Parts VI and VII: PFICs and section 960

Part VI gives information on passive foreign investment companies (PFICs) and qualified electing funds. Part VII reports the S corporation's interest in foreign corporation income under section 960.

How to fill out Schedule K-2 (Form 1120-S)

  1. 1

    Name and EIN

    Enter the name of the corporation and its employer identification number (EIN). The same name and EIN go at the top of each later page.

  2. 2

    Item A and item B

    Check Yes or No for each of Parts I through VII. The form says to complete and attach each part answered Yes. Check item B if this is an amended K-2.

  3. 3

    Part I

    Check the boxes for the additional specified attachments that apply. Box 13, other international items, takes an attached description and statement.

  4. 4

    Parts II and III

    Enter each line by column: U.S. source, foreign branch, passive, general and other category income with its code, and amounts sourced by shareholder, then the total in column (g). On the gross income lines, rows A, B and C each take a country code.

  5. 5

    Parts IV to VII

    Complete each remaining part answered Yes in item A. Part VII asks for amounts in the functional currency of the foreign corporation unless otherwise noted.

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Where it goes and related schedules

Attach to Form 1120-S

The form says to attach it to Form 1120-S, so it goes to the IRS with the S corporation's return.

Instructions

The form points to www.irs.gov/Form1120S for instructions. The About Form 1120-S page links the Instructions for Schedule K-2 & K-3 (Form 1120-S).

Shareholder copies

Each shareholder's share goes on Schedule K-3 (Form 1120-S), which the About page says the S corporation files with the IRS to report the shareholder's share of these items.

Filing exceptions

The About Form 1120-S page lists expanded and new filing exceptions for Schedules K-2 and K-3 (Form 1120-S) beginning tax year 2024, posted 4-JUNE-2025.

Who fills out Schedule K-2 (Form 1120-S)?

  • S corporations filing Form 1120-S

    The About page says Form 1120-S reports the income, gains, losses, deductions and credits of a domestic corporation or other entity with an S corporation election. Schedule K-2 extends its Schedule K.

  • Corporations with international items

    The parts cover foreign tax credit information, distributions from foreign corporations, section 951(a)(1) and 951A inclusions, PFICs and the corporation's interest in foreign corporation income.

  • Corporations using a filing exception

    The About Form 1120-S page lists a recent development on expanded and new filing exceptions for Schedules K-2 and K-3 (Form 1120-S) beginning tax year 2024.

  • Shareholders

    Shareholders get their share on Schedule K-3 (Form 1120-S). Its instructions say it is used to report to shareholders their shares of the items reported on Schedule K-2.

The S corporation completes it as part of its Form 1120-S. It is not filed by individual shareholders.

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Questions about Form 1120-S

Who files Schedule K-2 (Form 1120-S)?

The S corporation, attached to its Form 1120-S. The About Form 1120-S page calls it an extension of Form 1120-S, Schedule K.

How is Schedule K-2 different from Schedule K-3?

Schedule K-2 reports the S corporation's international items for the corporation as a whole. The shareholder's instructions say Schedule K-3 is used to report to shareholders their shares of the items reported on Schedule K-2.

Does every part have to be filled in?

No. Item A asks whether each of Parts I through VII applies, and the form says to complete and attach the parts answered Yes.

Is there an exception from filing it?

The About Form 1120-S page notes expanded and new filing exceptions for Schedules K-2 and K-3 (Form 1120-S) beginning tax year 2024. The separate instructions describe them.

Which forms use this information?

Part III is titled Other Information for Preparation of Form 1116. Part I has boxes for attached Form 5471 and Form 8858 information.