Carl
Level 15

Business & farm

There is that reference in the IRS pub where box 3 is for awards, prizes, and other. The problem is, "other" is not defined, and they don't specify what "other" should not include, at least. But there are other pubs (like the one for the 1120-S K-1) that specifically states to use that form for distributions like yours. In fact, that's what you have - a distribution, and not a payment, or even a return on your investment. You have ownership in the business, and received your share of the profit as a distribution. At least, that's how I see it.