Have you much experience doing business returns?
1120S = S Corp
1120 = C Corp
You can google "S corp dividend" to learn why these are not Dividends but Distributions. Examples:
"While an S corporation does distribute profits to its shareholders, they are not considered dividends because that term specifically refers to profits paid out after taxes. An S corporation is not subject to corporate tax. Dividends are paid by C corporations after net income is calculated and taxed."
"A subchapter S corporation is taxed as a disregarded entity and does not have to pay corporate-level taxes.
In other words, the K-1 is reporting the operations of the S Corp. The Distribution amount is reporting funds given to that shareholder, which in and of itself is not a taxable event, except in cases when that exceeds basis, and with a few other details that would need to be examined.
Their taking of the funds is not by definition Taxable. That's why you follow what the K-1 tells you. You don't get to arbitrarily Name That Category.
"Level Up" is a gaming function, not a real life function.