Updated October 18, 2026. Quick answer: Schedule K lines 14 to 16 cover three groups: two international check boxes on line 14, the alternative minimum tax items on lines 15a to 15f, and the items that affect shareholder basis on lines 16a to 16f. Line 14 is a box to check, lines 15 and 16 are amounts, and each is split among shareholders on Schedule K-1.
Line 14: international
The instructions say “Check the box on line 14a if you are reporting items of international tax relevance.” and “See the Instructions for Schedule K-2 (Form 1120-S) to determine if you need to attach Schedules K-2 and K-3.” For 14b: “Check the box on line 14b if you satisfy an exception to filing Schedule K-2 (Form 1120-S).” followed by “Attach a statement to explain your qualification for the exception.” The shareholder-side pages are at Schedule K-1 boxes 14 to 15.
Lines 15a to 15f: alternative minimum tax items
The group opens with “Lines 15a through 15f must be completed for all shareholders.” and “Enter items of income and deductions that are adjustments or tax preference items for the AMT.” A section 59(e) carve-out follows: “Don’t include as a tax preference item any qualified expenditures to which an election under section 59(e) may apply.”
Line 15a, whose caption is “Post-1986 depreciation adjustment”: “Figure the adjustment by subtracting the AMT deduction for depreciation from the regular tax deduction and enter the result on line 15a.” And “If the AMT deduction is more than the regular tax deduction, enter the difference as a negative amount.”
Line 15b: “Enter on this line the difference between the regular tax gain (loss) and the AMT gain (loss).” Line 15c: “Don’t include any depletion on oil and gas wells.” and “Enter the difference between the regular tax and AMT deduction.”
Line 15d: “Enter the total amount of gross income (within the meaning of section 613(a)) from all oil, gas, and geothermal properties received or accrued during the tax year and included on Form 1120-S, page 1.” Line 15e: “Enter any deductions allowed for the AMT that are allocable to oil, gas, and geothermal properties.”
Line 15f, whose caption is “Other AMT items (attach statement)”: “Attach a statement to Form 1120-S and Schedule K-1 that shows other items not shown on lines 15a through 15e that are adjustments or tax preference items”. For the shareholder amount: “Report each shareholder’s pro rata share of amounts reported on lines 15a through 15f in box 15 of Schedule K-1 using codes A through F, respectively.”
Lines 16a to 16f: items affecting shareholder basis
Line 16a: “Enter on line 16a tax-exempt interest income, including any exempt-interest dividends received from a mutual fund or other regulated investment company.” The instructions add “Generally, under section 1367(a)(1)(A), the basis of the shareholder’s stock is increased by the amount shown on this line.” The individual-side box is at Form 1099-INT box 8.
Line 16b: “Enter on line 16b all income of the corporation exempt from tax other than tax-exempt interest”. Line 16c: “Enter on line 16c nondeductible expenses paid or incurred by the corporation.” with the effect on basis stated as “Generally, under section 1367(a)(2)(D), the basis of the shareholder’s stock is decreased by the amount shown on this line.” The exclusion reads “Don’t include separately stated deductions shown elsewhere on Schedules K and K-1, capital expenditures, or items for which the deduction is deferred to a later tax year.”
Line 16d: “Enter the total distributions (including cash) made to each shareholder other than dividends reported on Schedule K, line 17c.” For property: “Distributions of appreciated property are valued at FMV.” and “If property other than cash was distributed, attach a statement to provide the following information.” The instructions point onward with “See Distributions, later, for the ordering rules.” Shareholder basis is tracked on Form 7203.
Line 16e: “Enter any repayments made to shareholders during the current tax year.” Line 16f: “Enter in U.S. dollars the total creditable foreign taxes (described in section 901 or section 903) that were paid or accrued according to the corporation’s method of accounting for such taxes.”
Where the number comes from
Line 14 comes from whether the corporation has items of international tax relevance. Lines 15a to 15f come from re-figuring depreciation, gains, depletion and oil, gas and geothermal items under the AMT rules. Lines 16a to 16c come from the corporation’s records of tax-exempt receipts and nondeductible spending, line 16d from distributions made, line 16e from repayments made to shareholders, and line 16f from foreign taxes paid or accrued.
Where it goes next
The instructions give the shareholder codes for the basis items: “Report each shareholder’s pro rata share of amounts reported on lines 16a, 16b, 16c, and 16f (concerning items affecting shareholder basis) in box 16 of Schedule K-1 using codes A, B, C, and F, respectively.” Distributions and repayments are handled differently: “Report property distributions (line 16d) and repayment of loans from shareholders (line 16e) on the Schedule K-1 of the shareholder(s) that received the distributions or repayments”. Line 16f also reduces the reconciliation, because the line 18 caption says to “subtract the sum of the amounts on lines 11 through 12e and 16f”. The shareholder basis page is Schedule K-1 box 16. See lines 17 and 18 for the next Schedule K lines, lines 11 to 13 for the deductions and credits, and Form 1120-S for the whole return.
Edition and line numbers
This page reads the 2025 Form 1120-S and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The title line of the form reads “U.S. Income Tax Return for an S Corporation” and the header reads “For calendar year 2025 or tax year beginning”. Check the tax year printed on the form you are filling in and use that year’s line numbers, because a different year’s form can number or word its lines differently.
Common mistakes
- Leaving line 15 for only some shareholders. The instructions say “Lines 15a through 15f must be completed for all shareholders.”
- Putting section 59(e) expenditures in the AMT lines. The instructions say “Don’t include as a tax preference item any qualified expenditures to which an election under section 59(e) may apply.”
- Reporting a dividend on line 16d. The instructions say line 16d counts distributions “other than dividends reported on Schedule K, line 17c.”
Related: Form 1120-S, Schedule K-1 boxes 14 to 15, Schedule K-1 box 16, Form 7203, and Form 1099-INT box 8.
Sources
- Instructions for Form 1120-S, U.S. Income Tax Return for an S Corporation (2025): https://www.irs.gov/pub/irs-pdf/i1120s.pdf
- Form 1120-S, U.S. Income Tax Return for an S Corporation (2025): https://www.irs.gov/pub/irs-pdf/f1120s.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.