Question
Inherited IRA Income Tax Withholding on a Trust's Form 1041
On the 1041, I am entering withholding from a 1099-R distribution from an inherited IRA that was made to the trust. The beneficiary of the trust will receive a K-1 for the income.
On the 1041, I reported the withholding on Schedule G line 14 federal income tax withheld.
I understand that I cannot pass the withholding on to the beneficiary via the K-1; however, my understanding is that I can reduce the distributable net income (DNI) by the amount of the withholding. Where in ProSeries would I enter the withholding to offset the DNI?
