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Form 1041 Schedule K-1, box 14H shows an adjustment in ProConnect Tax

by ProConnect Tax Online Updated 4 weeks ago

When working on a Fiduciary return, you come across an adjustment on the 1041 Schedule K-1, Box 14H - Adjustment for section 1411 net investment income or deductions.

The Schedule K-1, box 14 H calculation is the difference between the Schedule B, line 15 (Income Distribution Deduction) and Schedule B recalculated using the net investment income on Form 8960 for Schedule B, line 1.

If the Net Investment Income on Form 8960, line 8 is equal to Form 1041, line 9 the distribution deduction will be the same for both and an adjustment will not be generated in box 14 H of the Schedule K-1.

For more information, you may review the IRS instructions for Form 1041, namely page 44.

Even though the Form 8960 may not be generating, you can still view the form to see the amounts.

To override ProConnect's calculation:

  1. From the Input Return tab, go to Sch. K-1 Schedule K-1 Overrides/Miscellaneous Federal.
  2. Click on the Beneficiary from the tabs at the top > Then select the AMT & Other Tab.
  3. Scroll down to the Other Information (14) section.
  4. Enter an amount or -1 in Other modifications to net investment income (H).
ProConnect Tax

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