Schedule K-1 (1041) from trust lacks Box 11 A,B totals

[iiisee]

As bene on my late mom’s trust, I received a final Sch.K (form 1041) that lacked totals for sections 11A and B (requested by Turbo Tax). Instead, an attached Statement itemized amounts that don’t add up.

I hope the community can help me figure out what to upload into my 2023 disc version (TT Home/Business).

The attached Statement includes:

Box 11 – Excess Deductions on Termination

• Separate income/deduction amounts - I think these are items 1-22 of the 1041.
• The total “excess deduction on termination” less bene percentage (50%), and “All excess deductions are applicable to the net investment income tax.”

Box 11(A) – Excess Deductions on Termination

• Amounts for fiduciary fees and attorney, accountant fees on termination - But No Total.
• The amounts don’t add up to the excess deduction on termination amount in Box 11.

Box 11(B) – Excess Deductions on Terminations – Non-miscellaneous Itemized Deductions

• Amounts for taxes portion of excess deductions on termination, state and local taxes portion of taxes, non-investment property portion of taxes – But No Total

The total of Statement Box A and B does not equal the “excess deduction on termination” in Statement Box 11.

Should I:

• Upload the total in Statement Box 11 into Turbo Tax Box 11(A)?
• Total the 3 tax amounts in Statement Box 11(B) and upload that amount to Turbo Tax Box 11(B).

 Thank you for any advice.

[tagteam · Accepted solution]

You need to contact the trustee for clarification but note that you cannot "upload" the K-1 into TurboTax; you need to enter the information manually during the interview (the K-1 section of the program).

Also note that the delineated 11A deductions should add up to the total on Line 11 with an A code and, likewise, the delineated 11B deductions should add up to the total on Line 11 with a B code.

11A deductions are an adjustment to your income while 11B deductions are reported on Schedule A (if you itemize). Further note that miscellaneous itemized deductions subject to the 2% floor are not deductible at all. 

[iiisee]

Thank you very much for this very clear advice.