IL1041,Trust was formed in IL, beneficiary lives out of state. Pro series populating form k-1-t(3) and has pass thru withholding on dividends interest to beneficiary.

Forum|Forum|3 years ago
March 31, 2023
1 reply
29 views

Is this correct? I have three trusts similar. Two firms/cpa computed the pass thru withholdings on the dividends interest to out of state beneficiary. Now I have another firm that has not. This firm has an expensive tax software and I;m wondering if pro series is wrong? Or is there a box or what? Thank you so much!

ProSeries Professional

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Best answer by lizfidoruk

Thank you. That does seem to be an option but after going back in I was able to clear out the Sch NR that was populated then completed the worksheet for the k-1-t and it seems to be reporting the right numbers now. Appreciate your input

sjrcpa

Level 15

Most of the time, beneficiaries are only subject to tax on income from intangible (interest, dividends & capital gains) in their state of residence. An exception would be if the income is business income.

I don't know ProSeries but there must be some input to prevent the withholding tax.

The more I know the more I don’t know.

I

IntuitMark304

Level 6

lizfidoruk,

You can allocate interest/dividends between business/nonbusiness income on the Business Income Worksheet. Any amount classified as nonbusiness income would not be subject to withholding tax on the K-1-T(3).

L

lizfidorukAuthorAnswer

Level 3

Thank you. That does seem to be an option but after going back in I was able to clear out the Sch NR that was populated then completed the worksheet for the k-1-t and it seems to be reporting the right numbers now. Appreciate your input

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