Tax Form 1120sh Fill in and Calculate Online

Form 1120sh: Section 280H Limitations for a Personal Service Corporation (PSC)

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.

Section 280H Limitations for a Personal Service Corporation (PSC)
Name		Employer identification number
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)
1	Enter applicable amounts from preceding tax year	1
2	Divide number of months in deferral period of preceding tax year by number of months in preceding tax year. Enter the result as a percentage	2	%
3	Amount figured under preceding year test. Multiply line 1 by the percentage on line 2	3
4	Enter applicable amounts from the deferral period of the applicable election year	4
4	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.
5	Enter applicable amounts from the:
a	1st tax year before applicable election year	5a
b	2nd tax year before applicable election year	5b
c	3rd tax year before applicable election year	5c
6	Total. Add lines 5a through 5c	6
7	Enter adjusted taxable income for the:
a	1st tax year before applicable election year	7a
b	2nd tax year before applicable election year	7b
c	3rd tax year before applicable election year 1	7c
8	Total. Add lines 7a through 7c	8
9	Divide line 6 by line 8	9	%
10	Enter the percentage from line 9 or 95%, whichever is smaller	10	%
11	Enter adjusted taxable income for the deferral period of the applicable election year	11
12	Amount figured under 3-year average test. Multiply line 11 by line 10	12
13	Minimum distribution requirement. Enter the smaller of line 3 or line 12	13
13	• 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)
14	Enter amount from line 4	14
15	Enter number of months in deferral period of applicable election year	15
16	Divide line 14 by line 15	16
17	Nondeferral period. Subtract the number of months in the deferral period from the number of months in the applicable tax year. Enter the result	17
18	Multiply line 16 by line 17	18
19	Maximum deductible amount. Add lines 14 and 18. The PSC’s deduction for applicable amounts paid or incurred to employee-owners is limited to this amount. Attach Schedule H to the PSC’s income tax return. Any amount not allowed because of the section 280H(d) limitation is treated as paid or incurred in the PSC’s succeeding tax year	19

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