K-1 – Alaska Housing

Subject: Question Regarding S Corporation Schedule K-1 Income

Dear Alaska Housing Representative,

I am writing to clarify my income reporting for my housing assistance.

I am the sole shareholder and employee of an S corporation. I have reported my SSDI income and my W-2 wages from the corporation.

My 2025 tax return also includes a Schedule K-1 from the S corporation showing $5,074 of ordinary business income. I did not separately report the K-1 amount because I did not understand that Schedule K-1 business income might need to be separately reported for housing purposes.

I would like to make sure that my income information is complete and correctly reported.

I also want to clarify that I am continuing to operate and develop my business. I plan to hire a telemarketer to help obtain new customers and grow the business. My plan is to retain and reinvest available business funds in the corporation to pay the employee's wages, and other related business expenses. Therefore, Schedule K-1 ordinary business income does not necessarily represent the same amount of cash personally available to me for household expenses.

Please let me know whether Alaska Housing needs a copy of my Schedule K-1, Form 1120-S, corporate bank statements, payroll records, or any other business income or expense documentation.

I want to make sure that my income and business information are fully and correctly reported for housing assistance purposes.

Thank you for your assistance.

Sincerely,

John Kim