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

SOLVEDby Intuit18Updated July 03, 2023

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.

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