Where do I put Member Draws/Owner Draws on the 1120-S in ProSeries?

[IRonMaN]

No such thing on an 1120S.

[578]

Are you saying we do not total and enter how much the members of the Sub Corp took out during 2021 on the 1120-S tax return?  There is no place to enter this information on the 1120-S?  

Is there a place to enter Owner's draws on the individual 1040 individual, just not on their 1120-S?

[sjrcpa · Accepted solution]

For an 1120S it is called Distributions.

For a Schedule C there is no place to enter owner draws on the tax return.

[IRonMaN]

And distributions only happen after the shareholders have taken out a reasonable salary.

[qbteachmt]

There are no Owners for an S Corp. The shareholders might get distributions. The shareholder-employees get payroll. If any one shareholder gets a distribution, everyone gets some as pro-rata.

It's not called Draw, because they don't get to just take money. It's not theirs, alone. An Owner draws from a Sole Prop or SMLLC, because it is all theirs, already.

Distributions for an S Corp are not Expense, either. It's not a write off. You don't enter it on the 1040, because it's not taxable income. It's the movement of money that exists because of the operations that are reported on the 1120S and passed through on the K-1.

[578]

Thank you