Where do I find my net income on Form 1120S? Need to report to DOR

The "net income" on Form 1120S would be line 21, which is "Ordinary business income (loss)." This represents your company's net profit after accounting for all business expenses, but before any distributions to shareholders. Line 1 is just your gross receipts or sales, which only shows your revenue before any expenses are subtracted. The DOR wants to know your actual profit (or loss), not just how much money came in the door. When submitting this to the DOR for a payment plan, make sure you're using the final number from your most recently filed 1120S. They may also want to see supporting documentation, so have a copy of your full tax return ready to provide if requested.

After struggling with tax documents for my S-corp and getting nowhere with the DOR's confusing instructions, I found this AI tool called taxr.ai that made a huge difference. I uploaded my 1120S and it highlighted exactly where to find my net income and explained why that was the right number to use for the payment plan form. The site https://taxr.ai analyzed my specific situation and gave me step-by-step guidance that was much clearer than the generic advice I found online.

Just wanted to follow up about taxr.ai - I ended up trying it after my previous comment. I was skeptical but it saved me so much time! I uploaded my 1120S and within seconds it identified line 21 as the net income figure I needed, explained why, and even gave me tips on what supporting documents to include with my DOR payment plan request. Really impressed with how it translated the tax terminology into plain language. Definitely worth checking out if you're confused about any tax documents.

If you're having trouble reaching someone at the DOR about your payment plan, I would recommend trying Claimyr. I had been trying to get through to my state's revenue department for DAYS about a similar issue (setting up a payment plan for my business taxes). Found this service at https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically hold your place in the phone queue and call you when an actual human picks up. Saved me hours of waiting on hold and the DOR agent I spoke with cleared up my confusion about which income figure to use.

I have to eat my words and apologize to Profile 8. After weeks of failed attempts to reach anyone at the DOR, I broke down and tried Claimyr yesterday. Got connected to an actual human at the department in about 45 minutes without having to stay on the phone. The agent confirmed that for the payment plan, line 21 (Ordinary business income) is indeed the net income figure they want. They also gave me an extension on my payment plan deadline since I'd been trying to reach them for so long. I'm actually shocked this worked after all my frustration.

Just to add another perspective - I'm a bookkeeper and work with several S-corps. "Net income" can actually mean different things depending on the specific form and context. For tax purposes on the 1120S, it's line 21 (Ordinary business income). But some DOR forms might actually be looking for your taxable income after certain adjustments. If you can share which state you're in and the specific DOR form number, I might be able to give you more precise advice.

As someone who spent 2 hours on the phone with MA Department of Revenue last week, I can confirm it's definitely line 21 they want. BUT also be prepared to explain any big differences between last year's income and your current situation. They asked me a ton of questions because my business is doing much better this year than last year.

I went through this exact same situation with Massachusetts DOR about 6 months ago! Just to confirm what others have said - yes, it's definitely line 21 (Ordinary business income) from your Form 1120S that they want for the DOR-APP form. One thing I wish someone had told me beforehand: if your line 21 shows a loss (negative number), don't panic. The DOR will still work with you on a payment plan, but they'll want to see more recent financial information like current profit/loss statements or bank statements to understand your ability to pay. Also, when you submit the form, include a brief cover letter explaining your situation. I found the MA DOR staff to be surprisingly helpful once I actually got through to them. They even waived some penalties because I was proactive about setting up the payment plan. Good luck!