Lacerte carrying withholding from 592-B to line 11 of 1041

[Leon033]

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?

[sjrcpa]

Are you using -1 for your override, as opposed to -0-?

[Leon033]

I did put in -1, but the issue there is that I'm getting an error stating that the input value needs to be between 1 and 999 million. I could override the other taxes box to be a negative figure for the full amount being deducted, but that generates a statement and is not very neat. 

I'm working in screen 31 of the fiduciary module by the way- it's the screen I'm brought to when I do the "jump to input" from the 1041 form view. Is there another screen that would let me override this?

[Leon033 · Accepted solution]

Resolved:

Entry of 1 on Screen 12, "do not deduct state tax payments on federal return"