Entering Deductions in Form 1041 K-1

[mpheed]

I received a beneficiary's form 1041-K1. It has deductions in fields 1, 2a,2b, and 3. TurboTax does not allow negative numbers. How do I claim those deductions?

[mpheed]

The form does not have negative numbers. The numbers are deductions as noted on the form (as the K-1 allows "income, deductions, credits, and other income"). However when you try entering those numbers in  TurboTax K-1 form, it considers anything entered there as income. There is no option to claim deductions. Possible solution could have been allowing negative numbers in TurboTax form or a check box that cclaims them to be deductions. Question was how do I claim these deductions in TurboTax using its Form.

[mpheed]

Thanks for responding. Let me clarify.

I am a beneficiary of a terminated estate. The estate has sent me 1041 K-1. The estate had expenses and loss carryover, and as a final return of a terminating estate, those expanses and carryover are shown as deductions on my form 1041 K-1. The IRS states that this form to be  used to report to the beneficiary any deductions and credits, not just income. So the form I received shows deductions, on IRS Form 1041 K-1, boxes 1, 2A, and 2B. None of them are income and none of them are negative numbers. It is just that they are deductions that rightfully belong to me and that negatively affect my taxable income. However, when I try to enter in the TurboTax page these amounts in their respective boxes (1, 2A, 2B) the amounts I enter are treated as income, not deductions. So they increase my taxable income instead of reducing it. So somehow I need to show these amounts, reported to me by the estate, as deductions that reduce in my taxable income. So the question is how do I claim these deductions, since TurboTax does not accept deductions (loss of income) in their entry forms..

I hope it makes sense. Thanks.

[mpheed]

Because the accountant for the estate sent a supporting document that states that these are deductions due to Loss Carryovers. The IRS form is not just meant to be for reporting income. Right above where you have highlighted  IRS heading is "Beneficiary's Share of Current Year Income, Deductions, Credits and Other Items".  So although the box titles say Income, Dividends, etc. The form can be used to report Deductions in those categories. Those are losses suffered by the estate. Typically when that is done, accountant provides a supplemental document that clarifies that the amounts are deductions and not income.

[mpheed]

Hmm. Yes, it  is a final return. If not this form, where else would the estate tell me about the losses in income, dividends, etc.? The IRS instructions for K-1 specifically mention loss carry over and the 1041 K-1 is also meant to document and communicate deductions (right above all the boxes "Income, Deductions, Credits, and Other Items"). The problem is not the form I received, it is that there is no provision in TurboTax to claim deductions from an estate. Even forgetting if the form is right or wrong, where/how would I claim these deductions in TurboTax?