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Level 3
February 8, 2021
Solved

Form 1120: Entering Dividends Paid by Corp to Shareholder

  • February 8, 2021
  • 1 reply
  • 48 views

I saw a similar question posted months ago but could not follow the solution that was provided.

On Form 1120, where can I indicate the dividends paid by the corporation to the sole shareholder? My balance sheet is out of balance and the difference is dividends paid.

Thank you.

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Best answer by sjrcpa

Dividends reduce retained earnings.

1 reply

sjrcpa
sjrcpaAnswer
Level 15
February 8, 2021

Dividends reduce retained earnings.

The more I know the more I don’t know.
Level 3
February 8, 2021

Thank you. I entered them on Schedule M-2 under Distributions.

Level 2
January 12, 2022

Dividends distributed to an officer of an 1120 goes in Schedule M-2, what if is not required to file a balance sheet.