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Illinois PTE tax credit pass through to beneficiary from a trust

xxx1
Level 1

OK this should be a simple fix but I think there is a serious glitch in the Lacerte program.

I am working on Illinois trust (let's call it "T1") return, which is a partner in an IL partnership ("P2").  The income is fully passed thru to the beneficiary.

The K-1-P from Illinois has a PTE Credit on it which we also want to pass through to the beneficiary along with the income.

The IL instructions for IL-1041 specifically state that this is allowed, and if we want to do so - to NOT put this amount on line 55d of the IL-1041 but RATHER put it on Schedule D, Column H and on the K-1-T issued to the beneficiary.  Sounds simple, right?

Except when I enter this in this manner in Lacerte, put right on Sch D and K-1-T in screen 43 without entering in the partnership K-1 screen (screen 25) - IL REJECTS THE RETURN.

Simple fix, right?  Enter in screen 25 as pass through entity credit...except now Lacerte refuses to process the return for efile because it requires entry in screen 57 - other credits.

When I enter there-Lacerte takes it off the Schedule D and K-1-T for the beneficiary and puts on Line 55d...and submits for a refund...which I do not want!

Anyone else experiencing this?  If so, how did you work around this glitch to get this credit passed through to the beneficiary properly?

 

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