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Common questions about corporate income in ProConnect Tax

by ProConnect Tax Online Updated 6 months ago

For tax year 2023 returns: The IRS has implemented a new transition rule that delays reporting threshold changes. Your client may still receive 1099-Ks for transactions under the new, lower thresholds but they may not need to be separately stated in the tax return. Click here for more info.

Below, you'll find answers to frequently asked questions about corporate income returns:

How to enter PPP loans and EIDL grants

  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
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