Am a sole owner of a s-corp and pay myself a w2 salary. At the end of the year, I took money out beyond the w2 income but left some money in the company to reinvest for cash flow purposes. When entering this into turbotax it asks if I paid myself a distribution and then reports that on the K1 in 16D but is that right and does that count as a "distribution".
Then, on my personal taxes do I need to do anything with that amount as right now it just shows the full income amount and doesn't do anything with the distribution nor does TurboTax ask me anything about it.
Here are the rough numbers I'm working with, as it's a simple return overall:
Starting basis - $1000
Business income (line 1 from K1) - $62000
Distribution (line 16D from K1) - $37000
