taxq7474
Level 1
05-19-2024
07:54 PM
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Taxpayer received a Sch K-1 (Form 1041) from a Trust with Ordinary Income (Box 6) of $213,368 and Box 14 marked with Code H with an adjustment amount of -$213,368. Code H=Adjustment for net investment income or deduction. When I key this information into ProSeries, the ordinary income is being factored in but not the adjustment of negative -$213,368. How do I correctly reflect the adjustment so that it does not throw the taxpayer into an inappropriate tax bracket and create a tax liability? How do I capture the adjustment, so it correctly reduces the tax liability?
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