Get your taxes done using TurboTax

Yes, TurboTax Business will allow you to report the dissolution of your business and distribution of retained earnings.

See the attached screenshot for aid in navigating to the "Filing final return?" question in the "About Your Business" interview of TurboTax Business' S-Corp tax program.

In a dissolution, retained earnings are accounted for by way of distributions to the shareholders. After all other liabilities are met (i.e. "paid off") remaining assets should equal your retained earnings. Distributing those assets will "zero-out" retained earnings.

S-Corporation distributions are non-taxable.  S corporation shareholder distributions are payments of corporate earnings that have previously been reported as income to the shareholders. The total distributions (except for dividends) -- including cash -- made to each shareholder and reported on line 17c of Schedule K-1 should be reported on line 16d of Form 1120S, U.S. Income Tax Return for an S Corporation.