S Corp Income Reconciliation

[robinp]

I am having trouble reconciling book income with income per tax return.  Th balance sheet and retained earnings balanced perfect.  Any suggestions?  

[tagteam]

You might want to click the blue links on the Income (Loss) on Your Books screen and read the On Demand Tax Guidance.

[Rick19744 · Accepted solution]

Well you are one step ahead of most, in that your balance sheet balances.

You need to keep in mind that when filing an S corporation tax return, everything is not reported on the front page.

Take a look at the Sch K.  Here you will see the results of page 1 and also the items that are required to be separately stated.  In addition, look at Sch K line 18 and then the Sch M-1 line 8.

Not sure if you have book to tax M-1 type adjustments, but hopefully the above provides some direction on understanding the presentation and reconciliation.

[robinp]

Thank you!  When I reviewed the schedule k line 18 amount and schedule m-1 line 8, I was able to see how TT was calculating those entries.  I unchecked the box (in forms mode) on m-1 schedule that says "use this number for line 1."   Of course, this changed my Retained Earnings and Balance Sheet, but now I'm all balanced.  So happy....been driving me crazy.

[Rick19744]

Welcome.