Scorp paid w-2 wages to its officers but also distributions. Are the distributions deductible to the Scorp? If so where would I report them on the 1120S?

[DDollar · Accepted solution]

No, distributions are not tax deductible to the S-Corp, nor or they taxable to the shareholders.  They are not an expense, rather they represent retained earnings that have already been (or will be) included on shareholders K-1s, or a return of shareholders paid-in capital.  They reduce shareholder equity.