A couple of comments and observations:
- While it is possible to have a glitch, I don't recall any other comments in the forum regarding the software not completing the 1120-S correctly for distributions.
- Your facts aren't clear as to which line 16 code is reflected as a dividend; both? That would be odd and especially not reflected on Sch K as already noted.
- For the line 16E code, there are special rules related to repayment of reduced loan basis. If applicable you should have a note to explain the tax impact at the shareholder level.
- Neither of these lines should be reflected as a dividend
- If a "normal" distribution is to be taxable as a dividend, that should be reported separately on a form 1099-DIV by the S corporation and not on the Sch K or K-1.
- If there is repayment of a reduced loan basis, that income is ordinary and not a dividend.
Make sure your software is up-to-date. If you are still having issues, I would contact TT since, as noted by @Mike9241, we can't see your input.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
