Re: Schedule M-1 DRD Increasing Net Income on Line 1

HoustonCPA67

Hello all,

On Schedule M-1 of an 1120 C-Corp Tax Return:

I'm running into an issue where I input the Dividends Received Deduction in "Deductions not Charged Against Book Income" section. This is for a Book - Tax adjustment. Pro Connect says you have to manually enter this adjustment which makes sense.

However, when I input the $40,000 DRD it also increases the Net Income (loss) per books on line 1 thereby completely throwing off the M-1 and M-2 calculations.

Any ideas? Your time is greatly appreciated.

Kathi_at_Intuit

Hi @HoustonCPA67 welcome to the community and thanks for posting! We’d recommend reaching out to ProConnect Tax Support . While they can’t provide tax law or personalized tax advice, they can help review diagnostics to identify what might be going on.

We look forward to seeing you around the community.

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George4Tacks

Did you enter the dividends as shown in this image? The computation and adjustments should be automatic.

Answers are easy. Questions are hard!