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Level 2
posted Feb 12, 2022 12:28:09 PM

Inconsistent amount on beneficiaries K-1

I am in the process of completing my trust return that is a form 1041. I have two beneficiaries each receiving exactly the same amount of a distribution. On the K-1 item 4a for one beneficiary the number is a positive number of 54,303 For the other beneficiary the number is a negative number -23,351. See below

 

 

 

 

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1 Best answer
Level 2
Feb 13, 2022 12:43:00 PM

There is a BUG (?) in the software.  One of 2020 beneficiaries did not receive a distribution in 2021 so I left the distribution amount blank.  The software did not know how to treat a blank i.e. null amount and posted last year (?) or some unknown (?) percentage for the 2021 distribution for this beneficiary this caused more than 100% for the total distribution and cause the error.  When I entered $0.0 the program work OK.

 

2 Replies
Level 15
Feb 12, 2022 12:39:34 PM

I think you need to check both the information you entered for each beneficiary and also the Distributions section of the Interview (Step-by-Step).

 

There is an input error somewhere.

Level 2
Feb 13, 2022 12:43:00 PM

There is a BUG (?) in the software.  One of 2020 beneficiaries did not receive a distribution in 2021 so I left the distribution amount blank.  The software did not know how to treat a blank i.e. null amount and posted last year (?) or some unknown (?) percentage for the 2021 distribution for this beneficiary this caused more than 100% for the total distribution and cause the error.  When I entered $0.0 the program work OK.