S corporations must also include with the annual filing: A Massachusetts S corporation that is included in a 355U also files Form 355S or 63FI but that return will generally be informational only. Massachusetts S corporations must annually file Form 355S or Form 63 FI. An S corporation financial institution with gross receipts that are $9 million or more is subject to the excise at a rate of 4.00% for tax year 2020.An S corporation financial institution with gross receipts that are $6 million or more but less than $9 million is subject to the excise at a rate of 2.67% for tax year 2020.In addition, S corporation financial institutions are subject to a minimum excise of $456.An S corporation financial institution with gross receipts that are $9 million or more is subject to the corporate excise at a rate of 3.95% on net income subject to tax.An S corporation financial institution with gross receipts that are $6 million or more but less than $9 million is subject to the corporate excise at a rate of 2.63% on net income subject to tax.An S corporation financial institution is taxed at 9.0% on any income that is taxable at the federal level.More specifically the corporate excise for an S corporation financial institution is calculated as follows: An S corporation with gross receipts that are $9 million or more is subject to the excise at a rate of 3.00% for tax year 2020.įinancial institutions that are S corporations are taxed as a financial institution S corporation under MGL ch 63, § 2B and are not subject to the non-income measure of the corporate excise.An S corporation with gross receipts that are $6 million but less than $9 million is subject to the excise at a rate of 2.00% for tax year 2020.In addition, S corporations, like traditional corporations, are subject to a minimum excise of $456.An S corporation with gross receipts that are $9 million or more is subject to the income measure of the corporate excise at a rate of 2.95% on net income subject to tax.An S corporation with gross receipts that are $6 million or more but less than $9 million is subject to the income measure of the corporate excise at a rate of 1.97% on net income subject to tax.An S corporation is subject to the income measure of the corporate excise at a rate of 8.0% on certain built-in gains that are taxable at the federal level under IRC § 1374 and on passive investment income taxable at the federal level under IRC § 1375.An S corporation is subject to the non-income measure of the corporate excise at a rate of $2.60 per $1,000 of either taxable Massachusetts tangible personal property or taxable net worth.More specifically the corporate excise for an S corporation that is not a financial institution is calculated as follow: The amount of corporate excise tax that an S corporation generally is required to pay depends in part on the corporation’s gross receipts and whether they are a financial institution or not.
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S corporations are liable for the non-income measure of the corporate excise and are liable for the income measure of the corporate excise on any income that is taxable to the S corporation federally at the full corporate excise rate. S corporations that are financial institutions are not subject to the non-income measure of the corporate excise. Multiple member Limited Liability CompaniesĮntities that are S corporations for federal purposes are S corporations for Massachusetts purposes, with the exception of security corporations.Īn S corporation's income, losses, and deductions are passed through to the shareholders, and are reported and taxed on the shareholders' individual returns.The following taxpayers are not allowed to own shares in an S corporation: The subsidiary, in this case, must be a qualified subchapter S corporation (QSUB). An S corporation can own shares in another S corporation in specific situations.