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Common questions on Fiduciary passthrough K-1 credits in Lacerte

by Intuit Updated 10 months ago

Get answers to frequently asked questions about 1041 passthrough credits.

Where do I enter backup withholding?

To enter Backup Withholding from a 1099-INT:

  1. Go to Screen 15, Interest Income.
  2. Enter applicable income amounts.
  3. Scroll down to the Form 1099-INT section.
  4. Locate the Tax Withheld subsection.
  5. Enter the tax withheld in, Federal income tax withheld.

To enter Backup Withholding from a 1099-DIV:

  1. Go to Screen 16, Dividend Income.
  2. Enter applicable income amounts.
  3. Locate the Tax Withheld subsection.
  4. Enter the tax withheld in, Federal income tax withheld.

To enter Backup Withholding from a Fiduciary K-1:

  1. Go to Screen 25, Passthrough K-1's.
  2. Scroll down to the Credits (15) section.
  3. Enter the amount in, Estimated taxes credited from Trust (1041)(13)(A).

To enter Backup withholding from entities other than trust:

  1. Go to Screen 38, Other Credits and Withholding.
  2. Click on Other Credits & Withholding from the top left navigation panel.
    • This will take you to Screen 38.2.
  3. Enter the amount in, Backup withholding form 1099 [A].

Lacerte will automatically enter the backup withholding on the 1041 Line 24e. To pass the credit to the beneficiary per return:

  1. Go to Screen 9, Schedule K-1 Distribution Options.
  2. Enter a '2' in, Credits: 1= in fiduciary, 2= prorate to beneficiary [O].

In a Final year return, the Back Up Withholding will flow to the Schedule K-1, line 13 code B.

To enter the Passthrough K-1 Foreign tax credit information:

  1. Go to Screen 36, Foreign Tax Credit (1116).
  2. Select the Name of foreign country from the drop down menu.
  3. Select the Category of income (Ctrl+T) from the drop down menu.
  4. Locate the Gross Income, Deductions, and Losses section.
  5. Hold down Ctrl+E in, Gross income within country (Ctrl+E).
  6. Enter K-1 under the Description column.
  7. Enter the Amount.
  8. Click OK.
  9. Scroll down to the Foreign Taxes Paid or Accrued section.
  10. Enter the Date paid or accrued
  11. Locate the U.S. Dollars subsection.
  12. Enter the amount of foreign taxes paid in Other foreign taxes.
Lacerte Tax

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