Knowledge Base

10077: 1120 - Line 5 Interest

1120 Corporate

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


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 entry on

  • 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: To carry interest from the 6252 screen to the 1120, line 5, select the Carry to 1120 option next to the interest fields. 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.

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