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

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.

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).