Tax withholding from Form 1099 flows to line 24e of the Form 1041. If you want this amount to be distributed to the beneficiary's K1, follow the steps below:
An option must be set to indicate to the program that credits should flow to the beneficiary rather than remaining in the fiduciary.
To make the change for a single return:
- From the Input Return tab, go to Beneficiary/Grantor Info ⮕ Schedule K-1 Distribution Options.
- Enter a 2 in Credits: 1=in fiduciary, 2=prorate to beneficiary [Override]
- ProConnect will use the beneficiary allocation percentage to distribute to the beneficiaries.{}
- Go to Sch. K-1.
- Click on Schedule K-1 Overrides/Misc.
- Select the screen for Federal or the applicable state.
- Click to the Less Common Scenarios tab.
- Scroll down to the Percentage Overrides section.
- Enter a percentage amount in the field labeled Tax credits (xxx.xxxx).
- Make sure to correct the percentage for each beneficiary.
