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Common questions about entering interest income in the Fiduciary module of Lacerte

by Intuit Updated 1 week ago

Below, you'll find answers to frequently asked questions about entering interest income in the Fiduciary module.

  • Most interest income can be entered on Screen 15 - Interest Income.
  1. Go to Screen 15, Interest Income (1099-INT, 1099-OID).
  2. Locate the Form 1099-INT section.
  3. Under the Tax-exempt Interest subsection, enter the Specified private activity bond interest included above (Schedule I).
    • This entry will flow to Schedule I, line 7.
  1. If reporting amounts from a 1099-INT, go to Screen 15, Interest Income.
  2. If reporting amounts from a 1099-DIV, go to Screen 16, Dividend Income.
  3. Locate the Tax-Exempt Interest subsection and enter any applicable fields.
  4. Go to Screen 7, 1041 Distributions.
  5. Complete the Distribution Percentages (xxx.xxxxxx) section.
    • The tax-exempt interest will flow to the K-1 based on entries made here.
    • If distribution percentages are not entered, the tax-exempt interest will only flow to page 2 of Form 1041
  6. Go to Screen 43, Schedule K-1 Overrides/ Misc.
  7. Scroll to the Other Information (14) section and enter Tax exempt interest/dividends (A) (code 11) for each beneficiary.
    • The amount entered in this field will flow to that beneficiary's Schedule K-1.
    • Entries are necessary for each beneficiary receiving tax-exempt interest.

Refer to this resource to learn how to enter backup withholding in the program.

Lacerte Tax

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