1099R and 1041

[Kobebean]

Hi,

Doing a 1041 that includes a 1099R with Federal Withholding. Is there any area within the 1041 to allocate that withholding to the beneficiaries of the K-1. I see that dividends and interest are able to be allocated but not with 1099R's or maybe I am not doing it correctly?  Is this possible or does the withholding go flow back to the Trust only as a form of a refund? Any help is appreciated. 

Thanks

[Just-Lisa-Now-]

I dont think theres a way to allocate withholding to beneficiaries.  I tell them to choose NO withholding on distributions, get the full amount, then distribute to the beneficiaries so they can make estimated payments for the income on their returns.

[Kobebean]

I ended up putting the withholding in slot 4 of the dividend worksheet by itself, that way I could allocate to beneficiaries through the k-1 on the tax payments page. Not exactly the correct place but at least it's ended up in the right place. Not sure why you can do the same for 1099R withholding. 

[msmith7305]

Only estimated taxes can be allocated to beneficiaries. And only via an election.

Income tax withholding cannot be allocated to beneficiaries. You can get a refund and then split that up.

[Accountant-Man]

1041-T

[itonewbie · Accepted solution]

You generally can't allocate regular tax withholding to beneficiaries.  It's different for backup withholding and estimated tax payments.  See this older discussion with citation:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/the-treatment-is-codifi...