U.S. · Tax forms
Form 1120-S line 6, total income (loss).
What builds total income (loss) on an S corporation return, and what is kept off it.
Line 6 (“Total income (loss). Add lines 3 through 5”) adds gross profit, net gain (loss) from Form 4797, and other income (loss). Items that shareholders must figure separately go on Schedules K and K-1, not on this line.
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Result
Lines that make up line 6, 2025 form
| Line | Meaning | What the IRS says |
|---|---|---|
| Line 1a | Gross receipts or sales | Entered before returns and allowances |
| Line 1b | Less returns and allowances | Subtracted to give the balance on line 1c |
| Line 2 | Cost of goods sold | Attach Form 1125-A and enter the amount from Form 1125-A, line 8 |
| Line 3 | Gross profit | Subtract line 2 from line 1c |
| Line 4 | Net gain (loss) from Form 4797 | Form 4797, Part II, line 17; only ordinary gains or losses from assets used in a trade or business activity |
| Line 5 | Other income (loss) | Any other trade or business income (loss) not included on lines 1a through 4; list the type and amount on an attached statement |
| Line 6 | Total income (loss) | Add lines 3 through 5 |
| Separately stated items | Schedules K and K-1 | Items requiring separate computations by shareholders are not included on line 5 |
Line 5 examples
The instructions list as examples of other income interest income derived in the ordinary course of the corporation’s trade or business (such as interest charged on receivable balances), recoveries of bad debts deducted in prior years under the specific charge-off method, taxable income from insurance proceeds, and amounts from Form 6478 or Form 8864 credits.
Partnership, estate or trust income
The instructions send ordinary income (loss) from a partnership, estate or trust to line 5, with a separate statement showing the name, address and EIN. Portfolio income and rental activity income from those entities are not included on this line; they go on Schedules K and K-1 or Form 8825.
Where line 6 goes next
Line 21 adds the deductions on lines 7 through 20, and line 22, “Ordinary business income (loss),” subtracts line 21 from line 6.
Worked example
Birchwood Design Co. (made up), an S corporation, has gross profit of $310,000 on line 3, a $4,000 ordinary gain on Form 4797 (line 4), and $1,500 of other income on line 5. Line 6 is 310,000 + 4,000 + 1,500 = $315,500. Names and figures are made up.
More line pages in this set
Related lines: Form 1120-S Line 22.
Sources
- Instructions for Form 1120-S (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 1120-S (2025), U.S. Income Tax Return for an S Corporation: the printed line wording and arithmetic on the form (Form 1120-S (2025), created 4/7/25). Read November 2, 2026.
Tax year 2025 forms and instructions: Form 1120-S (2025) and its 2025 instructions. Line numbers and labels were read from the IRS PDF and instructions on the date read and can change between tax years, so check them against the form for your year. Names in worked examples are made up.
Frequently asked questions
What is Form 1120-S line 6?
Total income (loss): add lines 3 through 5, which are gross profit, net gain (loss) from Form 4797, and other income (loss).
Does line 6 include dividends or capital gains?
Items that shareholders must figure separately are reported on Schedules K and K-1, not on line 5. Check the instructions for Schedules K and K-1 for the item.
What goes on Form 1120-S line 5?
Other trade or business income (loss) not on lines 1a through 4, listed by type and amount on an attached statement.
Where does line 6 go?
It is the starting point for line 22: ordinary business income (loss) is line 6 minus total deductions on line 21.
Where does cost of goods sold come from?
Form 1125-A, line 8, when the corporation completes and attaches Form 1125-A.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.