Do you have a question? To be perfectly blunt, you should heed your accountant's advice.
It cut me off before I could finish. Hello! You helped me yesterday, and then I discovered I was filing the wrong forms for my corporation. I can't figure out where to report income on the regular 1120, because we did not pay payroll to ourselves. The TurboTax step by step instructions say to not include it in the officer compensation because no tax was paid on it. Is there another place I would enter the income? Thanks!
I am still not certain precisely with what you need assistance.
You enter business income by clicking the Federal Taxes tab, then Income, and then clicking the Start button to the right of Service receipts in the Business Income section.
I am not sure how that relates to the fact that you did not have a payroll, however.
What would be revenue? After all deductions, what was left. Shareholder equity? If I skip over that $$, my balance sheet is messed up.
This may seem obvious, but then I am still not sure where you are experiencing a problem.
There is Income and then there are Deductions; Income minus Deductions equals Taxable Income on your 1120.
Did your corporation generate any revenue whatsoever? Were there any deductions? Did the corporation distribute anything of value to the shareholders?
Yes, we took out $$ as shareholders, but didn't pay ourselves on payroll, that's why I'm not sure where to report it.
Then you in all likelihood paid a dividend to your shareholders and dividends paid by a C corporation are not a deductible expense. You do, however, have to issue a Form 1099-DIV to each shareholder to whom you paid a dividend.