ProConnect HelpIntuit HelpIntuit

Entering distributions for beneficiaries on Form 1041

SOLVEDby IntuitLacerte Tax31Updated July 27, 2021

Before you begin:  

You must have at least one beneficiary entered in Screen 6, Beneficiary/Grantor Information before entering in the percentage or dollar amount of distributions.

  1. Click the Detail tab
  2. Navigate to Screen 7, 1041 Distributions
  3. Select Distribution Percentages from the left navigation panel
  4. Enter the percentage amounts to be distributed for Ordinary
  5. Enter the percentage amounts to be distributed for Short Term
  6. Enter the percentage amounts to be distributed for Long Term

Enter the percentage amounts for the different types of income:

  • Under the Required (Sch. B, ln 9) columns for Income required to be distributed
  • Under the Other (Sch. B, ln 10) columns for Distributions that are not required and final year returns

Note: The combined percentages in both the Required and Other columns must not equal more than 100% this will cause the percentages to be too high and cause a critical diagnostic to generate.

To resolve the diagnostic if it generates, see Fiduciary Diagnostics Distribution Percentages Greater than 100% (Ref. #25516, #25512, #25510) for more information on clearing this diagnostic.

  1. Click the Detail tab
  2. Navigate to Screen 7, 1041 Distributions
  3. Select Dollar Distributions from the left navigation panel
  4. Enter the dollar amounts to be distributed for Ordinary
  5. Enter the dollar amounts to be distributed for Short Term
  6. Enter the dollar amounts to be distributed for Long Term

Enter the dollar amounts for the different types of income:

  • Under the Required (Sch. B, ln 9) columns for income required to be distributed
  • Under the Other (Sch. B, ln 10) columns for Distributions that are not required and final year returns

Additional Notes:

  • If you're unable to make entries on Screen 7, 1041 Distributions, or receive a Data Entry Error, "Value must be between 0 and 100" make sure that beneficiaries have been entered on Screen 6, Beneficiary/Grantor Information.
  • If you need to adjust the amounts generated on the K-1 for the beneficiaries, this can be done on Screen 43, Schedule K-1 Overrides/Misc.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.