Common questions about corporate income in ProConnect Tax

1. Go to Input Return ⮕ Income ⮕ Income
2. Under the Gross Income section, enter the amount in Gross receipts or sales as reported on the 1099-K

1. Go to Input Return ⮕ Income ⮕ Income
2. Go to the Interest Income section.
3. Enter the interest income received by the corporation in the applicable field:
   • Interest (Click on button to expand)
   • Tax-exempt interest (in-state bonds) (Click on button to expand)
   • Federal tax-exempt interest (out-of-state bonds) (Click on button to expand)
   • State tax-exempt interest (US bonds, T-bills, etc.) (Click on button to expand)

There are two solutions for entering dividend income. Per the IRS instructions for Form 1120, Form 1120, line 4, dividend income comes from Schedule C, line 19.

However, you should report dividends or earnings received from mutual savings banks as interest income.

To enter dividend income from Schedule C, line 19:

1. Go to Input Return ⮕ Income ⮕ Income
2. Scroll down to the Dividend Income and Inclusions section
3. Complete the applicable subsections for the type of dividends to report:
   • From Domestic Corporation
   • Debt Financed Stock
   • Certain Preferred Stock
   • From Foreign Corporations
   • Nontaxable Dividends
   • Fully Taxable Dividends

To enter dividends from mutual savings banks as interest income:

1. Go to Input Return ⮕ Income ⮕ Income
2. Scroll down to the Interest Income section
3. In the Interest (Click on button to expand) input, click to open the details window
4. Enter a Description
5. Enter the Amount