The following critical diagnostics are generating for a fiduciary final-year return:
- Total beneficiary's ordinary income percentage entered on Screen 7.1, 1041 Distributions: Distribution Percentages is greater than 100%. The total percentage entered in the Long-term columns for Required and Other (Schedule B, lines 9 and 10) can not equal more than 100% for all beneficiaries. If 100% is entered in for both Required and Other then 200% of DNI or TAI is distributed to beneficiaries. (ref. #25516)
- Total beneficiary's long-term capital gain percentage entered on Screen 7.1, 1041 Distributions: Distribution Percentages is greater than 100%. The total percentage entered in the Long-term columns for Required and Other (Schedule B, lines 9 and 10) can not equal more than 100% for all beneficiaries. If 100% is entered in for both Required and Other then 200% of DNI or TAI is distributed to beneficiaries. (ref. #25512)
- Total beneficiary's short-term capital gain percentage entered on Screen 7.1, 1041 Distributions: Distribution Percentages is greater than 100%. The total percentage entered in the Long-term columns for Required and Other (Schedule B, lines 9 and 10) can not equal more than 100% for all beneficiaries. If 100% is entered in for both Required and Other then 200% of DNI or TAI is distributed to beneficiaries. (ref. #25510)
How do I resolve this error?
These critical diagnostics will generate when entries have been made on the 1041 Distributions screen in both the Required (Schedule B, Line 9) and Other (Schedule B, Line 10) subsections.
Follow these steps to resolve the diagnostic:
- Go to the Input Return tab.
- From the left of the screen, select Beneficiary/Grantor Information and choose 1041 Distributions.
- Select Distribution Percentages.
- Click the blue Details button to expand the input screen.
- Remove percentages from the Required (Schedule B, line 9) subsection:
- Ordinary
- Short-term
- Long-term
- Enter percentages only in the Other (Schedule B, line 10) columns:
- Ordinary
- Short-term
- Long-term
Important information
- Percentages shouldn't be entered in both columns.
- Exception: In an intial/final year, both columns may be used. However, the combined total shouldn't exceed 100%.
- Percentages should only be entered in Other - Schedule B, line 10 in a final year.
- Percentages should be entered as whole values (xxx.xxxxxx) and should total 100.
- Percentages should be entered even if there is no income to distribute. They're also used to distribute capital loss carryovers and excess deductions on termination.
- In a final year, dollar distributions shouldn't be used.