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Where do I report dividends from Money Market Funds for S-Corp in 1120S?

Forum|Forum|2 years ago
March 3, 2024
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My S-Corp has a Cash Management Account at
Fidelity, where money is invested in Money Market Fund. It generates monthly dividends - Similar to interest on Savings account or A CD. How do I report it on 1120S? Is it bundled with the interest from the bank account?

TurboTax Online

Best answer by Rick19744

When being passed through to the shareholder(s), the character of the funds needs to stay the same.

So if the earnings are reported from Fidelity as interest, then reflect it as interest.

If the earnings are reported as dividends, then reflect it as dividends.

Rick19744Answer

When being passed through to the shareholder(s), the character of the funds needs to stay the same.

So if the earnings are reported from Fidelity as interest, then reflect it as interest.

If the earnings are reported as dividends, then reflect it as dividends.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

C

CDM523Author

@Rick19744:

Thank you for your quick answer. I understand that the income needs to pass on as is to the shareholder of the S-Corp, but where do I enter the Fidelity reported dividend amount on 1120S? This amount is already in my QuickBooks Pro as Other Income. I normally import the data from QB into TT Business to start the return. I need to specify where would this data go in the 1120S form during the import process. I would appreciate some recommendation on that.

Thanks!

Rick19744

I am not in a Windows environment, so can't be real specific regarding software input, however:

If the Fidelity earnings are reflected as interest, then this needs to be reported on form 1120-S Schedule K line 4
If the Fidelity earnings are reflected as dividends, then this needs to be reported on form 1120-S Schedule K line 5a and 5b as appropriate.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.