Introduction to the Florida S Corporate Return

The Florida S corporate income tax return is prepared for calendar, fiscal and short year corporations. Using your entries from the federal tax return and the Florida Interview Forms, the following forms for the Florida return are prepared:

If the S corporation has no federal taxable income, no information returns are required. Qualified subchapter S subsidiaries (QSub) are required to file an information return (Form F-1120) that identifies the subsidiary, the S corporation parent and the effective date of the election. If the S corporation is not subject to federal tax, only the tangible return is prepared. If the S corporation is subject to federal tax, Forms F-1120 and F-1120ES are prepared in addition to the tangible return.

A copy of the federal return is provided to file with the Florida return (Form F-1120).

Federal Input Form Notes and Features

Qualified Subchapter S Subsidiary (QSSS)

A QSub is not required to submit a schedule of its parent corporation with the informational return (F-1120) when it is subject to federal income tax.

Depreciation

Florida is now in conformity with the federal definition of listed property, Indian reservation depreciation, and the 15 yr life for certain real estate improvements. Florida remains deconformed from Sec. 168(k) bonus depreciation. Section 179 expense deduction is limited to $128,000. State depreciation is automatically calculated from your entries on the "Federal Depreciation and Amortization" Depreciation worksheet. Your entries on the "State Depreciation and Amortization" Depreciation worksheet > State if Different fields are not used to calculate Florida depreciation.

Federal Job Creation and Worker Assistance Act

Florida conforms to the federal Job Creation and Worker Assistance Act. No adjustments are made for depreciation differences due to JCWA.

FS Codes

The Florida return starts from federal taxable income. Except as noted for municipal bond interest and footnotes, you are not required to use FS codes for the Florida corporate return.

Footnotes

Footnotes entered on Basic Data worksheet, Notes section can be attached to either Form F-1120 by using FS, State use fields. See the separate instructions for Footnotes on Notes section.

Automatic Transfers

Generally, Schedules A, I, II, VI and R are not prepared for Florida S corporations. Therefore, items for these schedules are not transferred from federal return.

Municipal Bond Interest

Florida does not include municipal bond interest in the computation of Florida income.

If this is a multistate return and the corporation has municipal bond interest from different states, be sure to indicate the source of municipal bond interest on the federal Income/Deductions worksheet, Interest, Dividends section. The interest is considered to originate in the state entered on Basic Data worksheet for the automatic state return.

If you do not identify the municipal bond interest source on the federal worksheets, the other state return(s) may be incorrect.

Tax Accrual

State taxes carry to the federal return at your option; they do not carry automatically. Florida taxes computed on the Florida return carry to page 1 of the federal return if you enter a "1" in the "State and City Tax Accrual Option" Basic worksheet, Return Options section. This entry also accrues the tax to the appropriate sections of the federal balance sheet. If you choose State Tax Accrual Option 3, state taxes carry to the rental schedule instead of page 1 of the federal return.

If you choose State Tax Accrual Option 2, state taxes computed on the Florida return carry to page 1 of the federal return but do not accrue to the federal balance sheet. If required, a Schedule M-1/M-2 book/tax adjustment is made. If you choose State Tax Accrual Option 4, state taxes carry to the rental schedule instead of page 1 of the federal return.

If you do not choose a State Tax Accrual Option, state taxes computed on the Florida return neither carry to the federal return nor accrue to the balance sheet.

Florida Frequently Asked Questions

Q. Why isn't the income from Federal Form 1120S flowing automatically to Florida F-1120?

A. Florida F-1120 only taxes income that is taxed by federal Form 1120S, such as Built-in Gains, Excess Net Passive Income, etc.

Q. Why don't any numbers appear on Florida F-1120 when Basic Data worksheet > Option section is checked to force the F-1120 to print?

A. The F-1120 may be forced for information returns when there is no income taxable to Florida. Only the income taxed by the Federal Form 1120S, such as Built-in Gains, Excess Net Passive Income, etc. is taxable on Florida F-1120.

Q. Why isn't Florida F-1120 prepared for the initial/final year return?

A. The F-1120 must be filed when there is income taxable to Florida. Otherwise, an S corporation is not required to file the information return.

Q. Where do I attach a schedule for QSub when filing an informational return?

A. A qualified subchapter S corporation subsidiary (QSub)is not required to file an initial information return any more. A schedule including its parent corporation's information and effective date of the parent election is not necessary.

Q. Where do I make the depreciation adjustment related to the federal Job Creation and Worker Assistance Act?

A. Florida conforms to the federal Job Creation and Worker Assistance Act. No adjustments are made for depreciation differences due to JCWA.

Q. How is the 2D barcode generated for the Florida F-1120?

A. Enter "FL" as the state code on federal Common State worksheet > General Information section > State/City Field and Yes in the 'Request 2D barcode if applicable' field.