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 K 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.