I'm filing my LLC's taxes. I can't determine how to list Unappropriated Retained Earnings on my balance sheet.

Retained Earnings that appear on Form 1120S Schedule L Line 24 by default are "unappropriated." You cannot edit Retained Earnings on a business return that includes Schedule M-2. This number is automatically calculated based on last year's ending balance plus this year's income or loss.

 

You can review the calculation of Retained Earnings on the Schedule M-2/Retained Earnings Worksheet (Sch M-2 Wks in the forms list using Forms Mode). If you need to change any of the adjustments to Retained Earnings, go to Schedule M-2 on Form 1120S pg3-5. Any number in a yellow box and a blue or green font can be changed.

 

You can skip the Balance Sheet section if:

• Total business income (before deductions) is under $250,000; and
• Your business is not filing an Alabama, Connecticut (non-partnership), District of Columbia, Georgia, Kentucky, Louisiana, Massachusetts, Mississippi, New Jersey (non-partnership), New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, or Tennessee return; and
• Corporation year-end assets are under $250,000 or partnership/LLC year-end assets are under $1,000,000.

To remove the balance sheet from your return, go to Form 1120S p1-2 and scroll down to Schedule B Line 11(b). Check the box to remove Schedules L and M-1.

Thank you for the information to remove the balance sheet, however when I get to schedule B line 11, I am unable to check yes to meet the two conditions as it is greyed out and the check box has a red X instead of blue so it doesn't save the information. Any ideas on why that may be so that I can remove the balance sheet?