I?m having trouble figuring out where to enter my s-corp distribution. Here is a simplified example of what I?m confused about.

Form 1120s:
Gross Sales = $50,000 entered on line 1c & 6
Salaries(w2)= $10,000 entered on line 8
Other deductions = $10,000 entered on line 19
These numbers make line 20 = $30,000
These numbers make line 21 = $20,000

I would like to take the line 21 - $20,000 as a tax free distribution. Where do I enter it on line 1120s and is it carried over to form k-1 ?

You need to report S corp distributions to shareholders on SCh K line 16d and On Sch K1 of 1120S line as a code 16d to tell you, the shareholder that it reduces your tax basis in your stock.

Thank You so much for your help. I have really been struggling to figure this out.
Just to confirm the numbers above and the lines I entered them on are correct? also do I carry 1120s line 21 total over to line 1 of K-1. (If I do that wont I be taxed on the K-1 line1 income on my personal 1040?)
My goal here is to take a tax free distribution If that's possible.

Just to confirm the numbers above and the lines I entered them on are correct? >Gross Sales = $50,000 entered on line 1c & 6=>>correct
Salaries(w2)= $10,000 entered on line 8=>Correct
Other deductions = $10,000 entered on line 19=>>correct;however, you need to know that soemof other deductions,i.e., sec 179 deduction, charity, 50% of meal/entertainment expenses or etc need to be reported on SCH K of 1120S NOT on 1120S page 1 line 20.
These numbers make line 20 = $30,000=> I guess this number is incorrect;it?d be $20K($10K+$10K) Not $30K
These numbers make line 21 = $20,000>Incorrect; This should be $30K;$50K-$20K

also do I carry 1120s line 21 total over to line 1 of K-1. (If I do that wont I be taxed on the K-1 line1 income on my personal 1040?)=>$30k reported on 1120S line 21 should also be reported on SCh K of 1120S line 1 and SCh K1 of 1120S line 1; the distribution of $30K is reported on SCh K line 16d and on Sch K-1 line 16 with the code of D. Distributions of profits and losses to you constitute your incomeThe entire profit or loss of the S corp is passed through to your tax return, whether distributed or not.You need to report the profit of $30K on your 1040 line 17 and need to pay tax on the amount reported on Sch K-1 line 1 , and then you take distribution from the S corp . This means that aslongas you have sufficient amount of stock basis and AAA balance then you may take distribution from the accounts this year.ALSO, The tax consequences of distributions by the S corp to a you, a shareholder depend on your basis in the S corp stock and AAA baalnce. Distributions to you are not included in your gross income to the extent that the distribution does not exceed your basis in the stock. If the amount of the distribution exceeds the your basis, the excess is taxed to you as capital gain