How do you enter information from a Form 1041 K-1 (Trusts) Box 11B, Excess deductions on termination of the trust?

[luke622]

A deduction won't be assigned to your taxes if you just enter a number. You need to itemize it, but where? TT says to "search the topic and enter the amount in that topic." Meaningless.
Also, someone on here said the IRS has determined that excess deductions are no longer allowed. Wrong. Pub 529 explicitly says "Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust" are deductable.

[tagteam · Accepted solution]

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@luke622 wrote:
Also, someone on here said the IRS has determined that excess deductions are no longer allowed. Wrong.

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Excess deductions - Section 67(e) expenses are allowed (from K-1 (1041) Line 11A).

Not all excess deductions on termination (non-miscellaneous itemized deductions) are allowed (from K-1 (1041) Line 11B). If such deductions are allowed, they are entered on Schedule A.

See https://www.irs.gov/instructions/i1041sk1#idm140535812810848

Contact the trustee, administrator, executor, or other person responsible for preparing the 1041 and K-1.

[nycpa76]

11B cannot be entered (  non misc item. ded) . Only 11E NOL. How do you enter non misc itemized deductions?

[tagteam]

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@nycpa76 wrote:

11B cannot be entered (  non misc item. ded) . Only 11E NOL. How do you enter non misc itemized deductions?

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You may deduct the excess deductions shown in box 11, code B, on the applicable line on Schedule A (Form 1040).

See Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2020) | Int...

[nycpa76]

The Proconnect program does not generate  11B on the 1041 K-1, only 11E, even though I entered an amount in the input field  for 11B . Any thoughts? 

[tagteam]

@nycpa76 

You might want to post your question on the Intuit Accountants board.

See Tax Talk - Intuit Accountants Community

[tskraus]

I have the same question, i.e; schedule K-1 (form 1041) item 11.B, excess deductions - Non-miscellaneous itemized deductions and the box 11b note identifies the value as a state and local income taxes.  

When I go to schedule A on the form 1040  Other itemized deductions, line 16 and try and input the value, TT links me to Schedule A line-16 Miscellaneous Itemized Deduction Worksheet and I am unable to input the value on line 28.

Do I need to override something in TT? 

[tagteam]

State and local income taxes would be entered on Line 5a of Schedule A.

[djesterb]

This is exactly what I need to know. In my K-1 under 11b the specific description type is "state and local income taxes". TurboTax told me to search for that topic and enter in that amount for that topic. Well not that easy. So if you're saying it needs to go in Line 5a of Schedule A how do I edit that? I already have a number in that spot too. I just want to do this right. It's only $34 too.

[PatriciaV]

The amount from Form 1041 Schedule K-1 Box 11 Code B must be manually entered on the related tax form. In the case of state and local taxes, you have two choices:

1. In the Step-by-Step interview, go to Federal >> Deductions & Credits >> Estimates and Other Taxes Paid >> Other Income Taxes >> Withholding not already entered on a W-2 or 1099. 

   Choose a state from the State withholdings drop-down and enter the amount from Box 11 Code B.

2. In TurboTax for Desktop, click the Forms icon in the TurboTax header.

   Open the Tax Payments form and choose a State on Line 18a the enter the amount under the State column.

Either of these entries will report the amount on Schedule A Line 5a.

@djesterb 

[djesterb]

Thank youuuuuuu! This was much more informative. I appreciate your time and your response.