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1099-Q Education Distribution to a Fiduciary on Form 1041 in Lacerte

by Intuit Updated 10 months ago

A trust received an Education Distribution 1099-Q, but there is no input for it.  How do I report this amount at the Fiduciary level?

There are two possible ways to document the information.

1. If the distribution amount is greater than the qualifying education expenses for which it was used, then there's taxable income to be reported.  Use the Other Income screen 20 to report the net income, and then use Notes Screen 51 to generate a statement showing the distribution amount, the education expenses amount, and the taxable net income.

2. If the qualifying education expenses amount is greater than the distributions amount, there's no taxable income to report.  Use Notes Screen 51 to generate a statement showing the distribution amount, the education expenses amount, and the remaining expenses not covered by the distribution.  The statement will go along with the return as Supplemental Information.

Lacerte Tax

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