Use Tax Form 1120sh: Section 280H Limitations for a Personal Service Corporation (PSC) as a stand alone tax form calculator to quickly calculate specific amounts for your 2024 tax return. Alternatively you can use one of our Combined Federal and State Tax Estimator to quickly calculate your salary, tax and take home pay.
|Note: A newly organized PSC is considered to have met the section 280H distribution requirements for the first year of its existence and does not have to complete Schedule H. If, during the tax year, an existing corporation becomes a PSC and makes a section 444 election, the corporation is treated as if it were a PSC for the 3 preceding tax years. See Temporary Regulations section 1.280H-1T(e).|
|Part I Minimum Distribution Requirement (see instructions)|
|If line 4 is less than line 3, go to line 5. Otherwise, stop here. The PSC has met the minimum distribution requirement.|
Do not attach Schedule H to the PSC’s income tax return. Keep Schedule H with the PSC’s tax records.
|• If line 13 is equal to or less than line 4, stop here. The PSC has met the minimum distribution requirement.|
Do not complete Part II and do not attach Schedule H to the PSC’s income tax return.
Keep Schedule H with the PSC’s tax records.
• If line 13 is more than line 4, the PSC’s deduction for applicable amounts is limited under section 280H.
Complete Part II to figure the maximum amount the PSC can deduct.
|Part II Maximum Deductible Amount (see instructions)|