Where is ordinary income on Form 1120S?

Form 1120S is U.S. Income Tax Return for an S Corporation. First, total income is calculated in the Income Section of page 1. You add gross profit (cost of goods sold minus gross receipts/sales less returns/allowances) with net gain/loss from Form 4797 (Sales of Business Property) and any other income.

Second, in the Deductions Section, total the expenses on lines 7-19, which include compensation of officers, salaries/wages (less employment credits), advertising, etc.

Third, subtract Total Deductions on line 20 from Total Income on line 6. The result is Ordinary Business Income (or Loss).