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How to flow tax withholding to the K-1 in a final year 1041 in ProConnect Tax

by ProConnect Tax Online Updated 7 months ago

Tax withholding from Form 1099 flows to line 24e of the Form 1041. If you want this amount to be distributed to the beneficiary's K1, follow the steps below: 

An option must be set to indicate to the program that credits should flow to the beneficiary rather than remaining in the fiduciary.

 To make the change for a single return: 

  1. From the Input Return tab, go to Beneficiary/Grantor Info Schedule K-1 Distribution Options.
  2. Enter a 2 in Credits: 1=in fiduciary, 2=prorate to beneficiary [Override]
    • ProConnect will use the beneficiary allocation percentage to distribute to the beneficiaries.{}
  3. Go to Sch. K-1.
  4. Click on Schedule K-1 Overrides/Misc.
  5. Select the screen for Federal or the applicable state.
  6. Click to the Less Common Scenarios tab.
  7. Scroll down to the Percentage Overrides section.
  8. Enter a percentage amount in the field labeled Tax credits (xxx.xxxx).
  9. Make sure to correct the percentage for each beneficiary.
ProConnect Tax

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