Question
Taxpayer received a Schedule K-1 (Form 1041) with Ordinary Business Income and an Box 14 Adjustment for the same amount. The income is being captured but not the adjustment. How do I capture the adjustment so it correctly reduces the tax liability?
Taxpayer received a Sch K-1 (Form 1041) from a Trust with Ordinary Income (Box 6) of $213,368 and Box 14 marked with Code H with an adjustment amount of -$213,368. Code H=Adjustment for net investment income or deduction. When I key this information into ProSeries, the ordinary income is being factored in but not the adjustment of negative -$213,368. How do I correctly reflect the adjustment so that it does not throw the taxpayer into an inappropriate tax bracket and create a tax liability? How do I capture the adjustment, so it correctly reduces the tax liability?
