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10077: 1120 - Line 5 Interest

1120 Corporate

The amount on line 5 does not match interest on the INC screen in an 1120 return; why? 

Line 5 of Form 1120 is for interest income, which is generally entered on the INC screen. This field is an adjustment field; an amount entered here is combined with the interest amount, if any, from:

  • screen 6252 (Form 6252, Installment Sale Income),
  • screen 8912 (Form 8912, Credit to Holders of Tax Credit Bonds) carrying to line 19, and
  • screen K1P (Schedule K-1, Form 1065).

Note: 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. Starting in Drake17, interest will be carried automatically unless the Do NOT carry interest to Form 1120 box is checked on the 6252 screen. 

Enter tax-exempt interest income on the INC screen. 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.

See the 1120 Instructions for details about interest to be reported on Form 1120. 

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