  Undistributed Taxable Income Previously Taxed  I run an
S-Corporation, and I am trying to do my business taxes myself
for the first year. I have been in business for 23 years.
According to my 2009 K-1, I made an income of $99,000. Since I
was already taxed on this income, do I still have to pay taxes
on money I distributed to myself in 2010?  I am getting puzzled
because it is showing the $66,000 I distributed to myself on the
K-1 in 2010 but it seems I am still getting taxed for these
distributions. Why aren't the distributions being deducted from
the income this year? Also where would I put these tax free
distributions on my personal taxes?     An S corporation is
known as a pass-through entity.  This means the earnings are
generally not taxed at the entity level (exceptions are beyond
this response, but does not appear to apply to you).  The
earnings pass-through to the shareholder(s) and are included in
their 1040.  These amounts are reflected on each shareholder
Schedule K-1.  You need to be maintainin