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Level 2
posted Mar 8, 2025 7:32:41 AM

Why does Turbotax tell me 'cash distributions should be blank because you have checked the box...'

In Turbotax Business, when I enter distributions because I took money from my business last year (all of it) it says "cash distributions should be blank because you have checked the box NOT to compute Schedule M2 and/or not use the Schedule M2/Retained Earnings Worksheet. Enter distributions and/or dividends directly on Schedule K lines 16d and 17c.  

 

I don't know what box they're talking about that I supposedly checked.  And isn't Turbotax supposed to enter that on line 16d for me?  I have also noticed in for the 2 previous years, my distributions were not entered on the form either, so now I have to amend that.  Why is Turbotax not entering my distributions?

0 1 1389
1 Replies
Expert Alumni
Mar 11, 2025 11:41:35 AM

If you are not entering your balance sheet into the return then !00% of the profits are assumed to have been distributed to the shareholders.  So they don't need to be entered onto the K-1.

 

@Plarka