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Distributing Form 3800 credits to the beneficiaries of a 1041 return in ProConnect

SOLVEDby IntuitUpdated July 25, 2023

This article will help to understand why credits on Form 3800 are not passing to the beneficiary Schedule K-1's.

Some credits from Form 3800 in the fiduciary module pass to the beneficiary Schedule K-1's, box 13, and others are applied against the fiduciary tax liability calculated on Form 1041, Page 2, Schedule G.

The Schedule K-1 codes page, or page 2, shows a list of codes for Box 13 Credits and Credit Recapture. These appear on the Schedule K-1 when not associated with Form 3800.

Any credit reported on the Form 3800 will be used to offset the fiduciary tax, if any, on Form 1041, Page 2.  If there's no tax liability on the Form 1041, the Form 3800 won't generate.

To generate the 3800:

  1. From the Input Return tab, go to Credits Other Credits and Withholding  Other Credits and Withholding.
  2. Go to the General Bus. Credits tab.
  3. Make any applicable inputs on this screen to generate the 3800.

To input to put credits directly on the Schedule K-1:

  1. From the Input Return tab, go to Sch. K-1  Schedule K-1 Overrides/Misc.
  2. Choose either Federal or the applicable state you want to override
  3. Make entries for any credits under Credits and Credit Recapture (13) section in the tab for each Beneficiary on this screen to override the amount on the K-1.

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