Line 7 and 8 on the 1120S is where it goes. I would make sure you spike in out in the worksheets in case you are sadistic and want to someday tie back to the 941. Folks and all you high-level Intuit power uesers, it is pretty clear in the IRS instructions. I have not been a practicing CPA for 15 years now, but still do my own taxes and keep up with most of the arcane BS that is still permeating our tax code that both major political parties claim to want to simplify. However, I am amazed at these so-called payroll experts and CPAs that want to spit this out on a K-1 (through code P on 13g sched K) to the shareholder (s). The effect on the 1040 of the owners is nil either way because either the credit flows through or the higher net income does via reduced wages from line 7 and 8. I hope this helps.
