Entering tax exempt income for an S-Corporation in Lacerte

How do I enter tax exempt income for an S-Corporation?

1. Go to Screen 31, Schedule M-1, M-3.
2. Click on Schedule M-1 from the top left navigation panel. (This will take you to Screen 31.1.)
3. Scroll down to the Income Recorded on Books Not Included on Schedule K (-) section.
4. Locate the Tax-exempt Income subsection.
5. Hold down Ctrl+E in, Other (Ctrl+E).
6. Enter the Description.
7. Enter the amount under the Federal column.
8. Click OK.

This amount will flow to:

• Form 1120S, Schedule K, line 16b,
• Form 1120S, Schedule M-2, line 3.
• Schedule K-1, line 16 with code B.

Per the Form 1120S instructions,