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@Nurcamila wrote:

I am filing 1040 and I put the company profits in schedule SE : adjustments worksheet: part II: non farm income. Otherwise the individuals won’t get a tax refund.

what is the best option?

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Why would you put it there?  Schedule SE does not apply.  Or are you trying to falsely claim the Earned Income Credit???

If the officer/LLC member/client did not receive "compensation" from the corporation, you only enter the K-1.  You don't create false information on the 1040.

If the officer/LLC member/client DID receive "compensation" from the corporation, the corporation needs to amend the 1120-S, file late payroll forms (with penalties and interest) and file a late W-2 (with penalties).