Ok, PS gives an error message when I add a line item to show dividends reported to the estate and enter negative numbers. It gave the error message when I entered negative qualified dividends. The error message says that qualified dividends should be less than or equal to ordinary dividends.

Any ideas as to how to enter this in PS so the qualified dividend tax treatment for this is adjusted?

Sch D is no problem. I was able to enter a line item with a statement that the stock sale was reported to the estate and I was able to enter negative sale and cost of sale numbers. This looks weird on Schedule D so I hope it doesn't raise red flags.

However, the review says the return is not eligible for e-filing since Form 8949 show negative cost.

If I adjust everything on the Other Income line of F 1040 then the LTCG tax rate and qualified dividends rate won't be applied to the adjustments. 

How have any of you been able to successfully adjust this in PS and not have these issues?

Thanks.