Missing Schedules M-2

[XrayDoc88]

I have an S-Corp and started using TurboTax Business in 2019.  My 2019 1120-S form has a completed M-2 schedule.  I just realized that my 2020 and 2021 1120-S forms have completely blank M-2 schedules?  Why would this happen or how can I correct this?

I did unknowingly make a non dividend distribution in 2020 that exceeded the AAA balance on line 6.  I don't know if that is what caused the M-2 schedules in 2020 and 2021 to be blank.

[ThomasM125 · Accepted solution]

I'm not sure why the schedule is not populating. The balance of form M-2 can be negative, so I don't think the adjustment you mention affected anything. 

You can manually enter the amount in box 1 on schedule M-2 and also enter any adjustments on your current return to arrive at the correct balance at end of year. I suggest you go back to the last year you had a balance and use that for the beginning balance for the following year. Then, enter add any adjustments necessary to balance that year and do the same for the next year. Your main adjustment will often be the distributions taken, as they are not reflected on the income statement.