Solution #1- To enter Backup Withholding from a 1099-INT:
- Go to Screen 15, Interest Income
- Enter applicable income amounts.
- Scroll down to the Form 1099-INT section.
- Locate the Tax Withheld subsection.
- Enter the tax withheld in, Federal income tax withheld.
Solution #2- To enter Backup Withholding from a 1099-DIV:
- Go to Screen 16, Dividend Income.
- Enter applicable income amounts.
- Locate the Tax Withheld subsection.
- Enter the tax withheld in, Federal income tax withheld.
Solution #3- To enter Backup Withholding from a Fiduciary K-1:
- Go to Screen 25, Passthrough K-1's.
- Scroll down to the Credits (15) section.
- Enter the amount in, Estimated taxes credited from Trust (1041)(13)(A).
Solution #4- To enter Backup withholding from entities other than trust:
- Go to Screen 38, Other Credits and Withholding.
- Click on Other Credits & Withholding from the top left navigation panel. (This will take you to Screen 38.2.)
- Enter the amount in, Backup withholding form 1099 [A].
Lacerte will automatically enter the backup withholding on the 1041 Line 24e. To pass the credit to the beneficiary per return:
- Go to Screen 9, Schedule K-1 Distribution Options.
- Enter a '2' in, Credits: 1= in fiduciary, 2= prorate to beneficiary [O].
Note: In a Final year return, the Back Up Withholding will flow to the Schedule K-1, line 13 code B.