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Generating fiduciary Schedule J (1041) in Lacerte

by Intuit Updated 10 months ago

Follow these steps to generate Schedule J in the Fiduciary module:

  1. Go to Screen 61, Accumulation Distribution (Sch. J)
  2. Select the blue General link from the left navigation panel.
  3. Check the box labeled Trust is subject to throwback rules after 8/5/97.
  4. Select the 1 from the left navigation panel. 
  5. Enter the Throwback year (enter as 1969, 1970, etc.).
    • This should be the earliest year—in four-digit format—to which an accumulation distribution is applicable.
  6. Enter all applicable information for the year: 
    • Distributable net income
    • Tax-exempt interest included in DNI
    • Distributions
    • Taxable income
    • Tax
    • Tax on income other than LTCG (tax years prior to 1979 only)
    • Net short-term gain allocable to corpus
    • Net long-term capital gain allocable to corpus
    • Long-term capital gain deduction
    • Prior throwbacks
  7. Click Add from the left navigation panel to add an additional throwback year, if applicable.

If the Schedule J isn't generating after entering the amounts, make sure that the distribution exceeds the accounting income. If not, then the Schedule J won't generate even when there are entries on Screen 61. This is because the distribution must exceed the accounting income of the trust in order to have an accumulated distribution. Refer to the IRS Instructions for Schedule J for more information.

Lacerte Tax

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