Level 3

Question

How do I enter the dividends a corporate officer takes

Forum|Forum|6 years ago
June 4, 2020
7 replies
25 views

I am having trouble balancing my Schedule M. There are $44,000 worth of withdrawals by the Corp officer. I'm not figuring out where to put them to make it flow as taxable income to the K-1 and balance my schedule

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abctax55

Level 15

C or S Corp?

HumanKind... Be Both

A

acctjoAuthor

Level 3

S

abctax55

Level 15

Just in case of 'delete', here's the original post:

I am having trouble balancing my Schedule M. There are $44,000 worth of withdrawals by the Corp officer. I'm not figuring out where to put them to make it flow as taxable income to the K-1 and balance my schedule

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S-Corp shareholders/officers generally take distributions AFTER they take payroll based on reasonable compensation.

Distributions are not (generally...) taxable.

They are an adjustment on M-2 on Form 1120-S; they appear on Sch K, line 16d

They show on the K-1 on line 16, Code D

HumanKind... Be Both

Accountant-Man

Level 13

Why would an officer take withdrawals? Is she a shareholder, too?

** I am "Elevating with Intention!"

A

acctjoAuthor

Level 3

problem solved

Accountant-Man

Level 13

Good for you. Thanks for sharing.

** I am "Elevating with Intention!"

qbteachmt

Level 15

You stated S Corp, but this would not be Dividends and this typically is an error: "to make it flow as taxable income" Because distributions, up to a point, are not taxable.

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