Entering tax exempt income for an S-Corporation in ProConnect

How do I enter tax exempt income for an S-Corporation?

1. From the Input Return tab, go to Balance Sheet ⮕ Schedule M-1, M-3 ⮕ Schedule M-1.
2. Scroll down to the Income Recorded on Books Not Included on Schedule K  section.
3. Locate the Tax-exempt Income subsection.
4. Expand the details on Other (Click on button to expand).
5. Enter the Description.
6. Enter the amount under the Federal column.
7. Click OK.

This amount will flow to:

• Form 1120S, Schedule K, line 16b,
• Form 1120S, Schedule M-2, line 3.
• Schedule K-1, line 16 with code B.

Per the Form 1120S instructions,