I'm preparing a complex trust (Special Needs Trust) return in the Fiduciary module. The trust was the beneficiary of another trust (Living Trust turned Irrevocable) that sold a property in CA. Withholding occurred on the sale, passed through to the Special Needs Trust via 592-B.

The issue I'm having is that Lacerte is carrying this withholding onto line 11 of the 1041. It is appearing on the 541 as a refund- yet Lacerte is trying to claim a deduction on 1041. Removing the value from the 592-B input screen eliminates the refund and deduction entries. 

As the sale was nontaxable due to Step-Up in basis, and the withholding is a pure refund, and the Special Needs Trust paid no state taxes, I don't believe this should be happening. Lacerte is not letting me override the value to show $0 in taxes paid.  Any Suggestions?