Common questions on Fiduciary passthrough K-1 credits in Lacerte

Get answers to frequently asked questions about 1041 passthrough credits.

Where do I enter backup withholding?

To enter Backup Withholding from a 1099-INT:

1. Go to Screen 15, Interest Income.
2. Enter applicable income amounts.
3. Scroll down to the Form 1099-INT section.
4. Locate the Tax Withheld subsection.
5. Enter the tax withheld in, Federal income tax withheld.

To enter Backup Withholding from a 1099-DIV:

1. Go to Screen 16, Dividend Income.
2. Enter applicable income amounts.
3. Locate the Tax Withheld subsection.
4. Enter the tax withheld in, Federal income tax withheld.

To enter Backup Withholding from a Fiduciary K-1:

1. Go to Screen 25, Passthrough K-1's.
2. Scroll down to the Credits (15) section.
3. Enter the amount in, Estimated taxes credited from Trust (1041)(13)(A).

To enter Backup withholding from entities other than trust:

1. Go to Screen 38, Other Credits and Withholding.
2. Click on Other Credits & Withholding from the top left navigation panel.
   • This will take you to Screen 38.2.
3. Enter the amount in, Backup withholding form 1099 [A].

Lacerte will automatically enter the backup withholding on the 1041 Line 24e. To pass the credit to the beneficiary per return:

1. Go to Screen 9, Schedule K-1 Distribution Options.
2. Enter a '2' in, Credits: 1= in fiduciary, 2= prorate to beneficiary [O].