Re: Where do I place Officer Withdraw on the 1120S...
JeffreyR77
Expert Alumni

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The amount entered on Line 16 of the K1 reports distributions that reduce a shareholder's basis in the corporation and does not represent income reportable on the form 1040. 

 

Distributions reported on Line 16 of the K1 do not represent reasonable compensation for an officer of the corporation or an expense of the corporation.  Distributions reported on the K1 are not subject to FICA or Medicare taxes. Distributions are not reported on any line of the 1120S. 

 

Here is additional information on reporting distributions on form 1120S K1 .

 

For guidance on reasonable compensation requirements for officers of S-Corporations, please refer to Reasonable Compensation Requirements

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