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Fiduciary module does not prorate tax withheld from retirement distributions to beneficiaries

Fiduciary module.  Screen 9, Sch K-1 Distib. Options.   Credits: 1= in fiduciary, 2= prorate to beneficiary.   Lacerte prorates the tax withheld on dividends by not the tax withheld on IRA.
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4 Replies 4
Drphibes
Level 4

I put in a service request on this on 2/21, it is still open.  Has not been addressed. 

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sjrcpa
Level 15

Might it have something to with the fact that the withholding on the dividends is backup withholding and the withholding on the IRA is not?


ex-AllStar
Drphibes
Level 4

I have seen no change in the law and I have been doing the same Fiduciary Estate return for 4 years (as well as 2 others, same distribution, during that time).  Prior to 2020, put a 2 (prorate to beneficiary) on the line in Screen 9, Credits, and boom, straight to K-1 Line 13 code B, exactly like it is supposed to.  What's really pissing me off is Lacerte's lack of response on this.

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Drphibes
Level 4

Have to admit it, I'm mistaken.  The K-1 2020 instructions as well as the 1041 specifically say Backup Withholding.  That's not going to go down well with the client.

Thank you for your efforts.