Sandra1
Level 2

I am doing a 1040 for a client that is a 1041 beneficiary. On the K-1 line 1 it shows interest income of $736 and then on line 14a it shows tax exempt amount of $720. On the 1040 it shows the tax exempt interest of $720 on line 2a, but is still including this amount on line 2b. How do I get ProSeries to actually subtract the taxable amount on line 2b? Also on the K-1 it is showing $3909 on line 5 and then it is showing -3909 on Line 14H as an adjustment to 1411 NII. So is this amount still taxable on the 1040 - just not the 8960 for the additional tax calculation?

0 Cheers