Generating Form 1041-T in Lacerte

An Estate can make this election only in the final year of the estate, the form will not generate if it is not the final year.

How do I file?

Attach Form 1041-T to Form 1041 only if you are making the election with Form 1041. Otherwise, file Form 1041-T separately.

To generate Form 1041-T:

1. Go to Screen 2.1, Miscellaneous Information.
2. Under Final Year Estate/Trust make sure the Final year box is checked.
3. Go to Screen 12, Estimates (1041ES).
4. Enter the Amount paid and Date under the 1st Quarter subsection.
5. Enter the amount to apply to the beneficiary in Applied to beneficiary.
6. Repeat steps 2 and 3 for the remaining quarters in which estimated payments were made.
7. This will generate the 1041-T with the required amounts.
8. If you are filing the 1041-T seperate from the tax return, you'll need Lacerte to enter the name and address: On Screen 12, enter a 2 in the field for 1 = 20YY Form 1041-T previously filed, 2 = file 1041-T separately field.

Other considerations:

• An estate can make this election only in the final year of the estate.
• The allocation to the beneficiaries is considered a payment of estimated tax made by the beneficiaries on the last day of the tax year. These amounts are reported on line 13 with a code A of each beneficiary's Schedule K-1.
• The estimates are allocated to the beneficiaries based on the share of Ordinary Income distributed to each beneficiary. If there is no Ordinary Income being distributed, then there will be no estimates allocated automatically.
• In this situation, you will have to use the overrides to allocate the estimate amounts (Screen 43, Schedule K-1 Overrides/Misc.)
• In order to make the election to allocate estimated tax payments to beneficiaries valid, the Form 1041-T must be filed by the 65th day after the close of the tax year. The program will determine if the day has past based on the computer date and generate a critical diagnostic warning.