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Business & farm
If you contributed to the corporation, the amount you contributed is your basis in the corporation. If you still have basis, then those distributions reduce your basis but this is not taxable income unless your basis is reduced to zero. Any distributions after that will be taxable income. Ordinary income should not have distributions included unless you have no basis left in the corporation.
You might review your entries in Turbo Tax to see if they match, especially in the section that you report your equity in the business if you feel that your distributions are reported incorrectly.
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March 17, 2021
5:50 PM