Turbo Tax Business - Share Distributions / Retained Earnings Error

[sduttonusa]

I have entered $20,000 in Shareholder Distributions (Cash) in the Step By Step process in the first part of TurboTax, but when I get to the Balance Sheet / Retained Earnings section in TurboTax, the Shareholder Distributions says “$0” . . .  thus Turbo Tax’s Retained Earnings is $20,000 off from my QuickBooks Retained Earnings.

It appears that TurboTax is not bringing the Shareholder Distributions over to the Retained Earnings section of the Balance Sheet.

[Mike9241 · Accepted solution]

is it showing on the k-1s and m-2 line 7 in column a? 

[sduttonusa]

I see the $20,000 on line 16 on my K-1 "Items affecting Shareholder Basis"

On the M-2 worksheet, the $20,000 is at the bottom, line G, "Distributions in excess of Retained Earnings"

My Retained Earnings for my S-Corp are currently in the negative, so the $20,000 is not being "added" to the negative in Turbo Tax, but is being added to the negative in QuickBooks.  I was told by an accountant that the Share Distributions were against my Basis . . . not Retained Earnings.