Knowledge Base

10077: 1120 - Line 5 Interest

1120 Corporation

How do I enter interest in an 1120 return? 

Interest income can be entered in the following location(s), as applicable:

  • INC screen, line 5, for interest income,
  • INC screen, Tax Exempt Interest line, 
    • This amount flows, as applicable, to Schedule K, line 9, and to Schedule M-1, line 7. Override fields are available on screens and M1, if needed.
  • 6252 screen (Form 6252, Installment Sale Income),
    • the Do NOT carry interest to Form 1120 box on the 6252 screen will prevent amounts from the 6252 from flowing to the return.*
  • 8912 screen (Form 8912, Credit to Holders of Tax Credit Bonds) carrying to line 19,
  • K1P screen, if the corporation received a Schedule K-1 Form a partnership, 
  • K screen, line 9 (override field). 

Review the field help (F1) on the INC screen, line 5, and see the 1120 Instructions for details about reporting interest on Form 1120. 

*In Drake16 and prior, to carry interest from the 6252 screen to the 1120, line 5, select the Carry to 1120 option next to the interest fields.

Related Links

Also In This Category

Article has been viewed 9.4K times.
Last Modified: 5 Months Ago