Entering distributions for beneficiaries on Form 1041 in Lacerte

To begin, you must have at least one beneficiary entered in Screen 6, Beneficiary/Grantor Information before entering in the percentage or dollar amount of distributions.

Follow these steps to enter Beneficiary Distributions by percentages:

1. Select the Detail tab.
2. Navigate to Screen 7, 1041 Distributions.
3. Select Distribution Percentages from the left navigation panel.
4. Enter the percentage amounts to be distributed for Ordinary.
5. Enter the percentage amounts to be distributed for Short Term.
6. Enter the percentage amounts to be distributed for Long Term.

Enter the percentage amounts for the different types of income:

• Under the Required (Sch. B, ln 9) columns for Income required to be distributed
• Under the Other (Sch. B, ln 10) columns for Distributions that are not required and final year returns

The combined percentages in both the Required and Other columns must not equal more than 100% this will cause the percentages to be too high and cause a critical diagnostic to generate.

Follow these steps to enter Beneficiary Distributions by dollar amounts:

1. Select the Detail tab.
2. Navigate to Screen 7, 1041 Distributions.
3. Select Dollar Distributions from the left navigation panel
4. Enter the dollar amounts to be distributed for Ordinary.
5. Enter the dollar amounts to be distributed for Short Term.
6. Enter the dollar amounts to be distributed for Long Term.

Enter the dollar amounts for the different types of income:

• Under the Required (Sch. B, ln 9) columns for income required to be distributed
• Under the Other (Sch. B, ln 10) columns for Distributions that are not required and final year returns

Additional Notes:

• If you're unable to make entries on Screen 7, 1041 Distributions, or receive a Data Entry Error, "Value must be between 0 and 100" make sure that beneficiaries have been entered on Screen 6, Beneficiary/Grantor Information.
• If you need to adjust the amounts generated on the K-1 for the beneficiaries, this can be done on Screen 43, Schedule K-1 Overrides/Misc.