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How to resolve Lacerte Diagnostic ref 25543 "Final Return and DNI has not been fully distributed" for Form 1041

by Intuit14 Updated 1 year ago

When working on the final return for a Fiduciary, you may encounter the following critical diagnostic:

  • This is a FINAL return and DNI has not been fully distributed in Screen 7, 1041 Distributions. (ref. #25543)

This critical diagnostic generates to inform you that Distributable Net Income is not being distributed to the beneficiaries in full. This critical diagnostic will not prevent you from e-filing.

If the DNI should not be distributed in full:

Check the box next to the diagnostic to indicate that the diagnostic has been reviewed.

If the DNI should be distributed in full:

  1. Go to Screen 7, 1041 Distributions.
  2. Click on Distribution Percentages from the left-hand navigation panel.
  3. Enter the percentages under the Other (Sch. B, ln 10) columns:
    • Ordinary
    • Short Term
    • Long Term

Percentages should be entered as whole values (xxx.xxxxxx) and should total 100.

Lacerte Tax