- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Entering k1 deduction does not affect tax calculation
I have a K1 Form 1041, I did upgrade to the Premier edition because I received this form. The lawyer stated this would be a miscellaneous deduction, however when I enter this into the section on the form and it appears in Box 11 it does not change my tax owed. It is not showing up at all under deductions section and it shows the Trust name under Business Items but there is a 0 amount.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Entering k1 deduction does not affect tax calculation
If the what the attorney said is correct, the deduction would be on Sch A, Itemized Deductions. Unless it meets criteria for an exception, it would be subject to 2% of AGI.
If when combined with other misc. deductions, they don't exceed 2% of AGI, and/or your total itemized deductions don't exceed the standard deduction amount, then it won't have an effect on taxable income.
If you can, preview the worksheet and/or the actual Sch A...it should be showing up there in the misc. deductions as part of the amounts before computing 2% of AGI.
Related discussions
view allStill have questions?
Or browse the Forums