Question

Shareholder distribution not correct

Forum|Forum|3 years ago
March 14, 2023
1 reply
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In my retained earning reconciliation the shareholder distribution amount does not match the amount I entered under that heading. How do I change that so I can balance the balance sheet? This is for an S-corp. I think it's a bug in Turbotax

S-Corp

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ThomasM125

I think you are refering to line E of the Schedule M-2/Retained Earnings Memo Smart Worksheet, entitled "Less Dividends and Distributions." That amount comes from the entry on Form 1120-S, schedule K, above line 16d where it says "Enter total cash and property (fair market value) distributed to shareholders." Enter the dividends on that line and the number will flow to Schedule M-2, line 7 "Distributions" and to line E of the retained earnings worksheet.

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sheryl lundstrom

I have the amounts of shareholder dist in the k1 but they are not flowing over to retained earnings. How do i get them to move over?

PatriciaV

How did you enter the distributions? When you report the total distributions in the step-by-step interview under Shareholder Information, the amount is automatically allocated to the members according to their ownership percentages. You can track the flow of this entry using Forms Mode.

The allocated distributions appear at the bottom of the Schedule K-1 Worksheet.
From there, the total is shown on Form 1120S p3-5 in the Shareholder Distributions and Dividends Smart Worksheet under Line 16(c).
Also check the bottom of Schedule M-2 Worksheet under Schedule M-2/Retained Earnings Memo Smart Worksheet to see how the distributions affect Retained Earnings. The total here should tie to Schedule L Line 14(d).