About chl11942

chl11942

I should have mentioned that this update was made in TurboTax Deluxe as well.

chl11942

Right. After TurboTax made this change, I found I needed to remove the Box 11 Code A entry I had previously made through the TurboTax Schedule 1 Worksheet to avoid counting this value twice.

chl11942

Here is some additional information for my question. I went back to TurboTax for my 2019 tax return (TurboTax Deluxe Desktop) and entered fake Schedule K-1 values that were similar to the values on the Schedule K-1 I received for 2020. Then I had TurboTax print the pages required for filing this return to a pdf file. Just as with my 2020 return, the values from the fake Schedule K-1 were shown in Form 1040 Schedule 1, Line 22 and Form 1040 Schedule D, Line 12 for the 2019 return. TurboTax also prepared a Schedule E, Page 2 for the fake trust with the only entry on Schedule E being a line in Part III with the trust’s Name and its EIN. There were no pages in the material that TurboTax prepared for filing this fake 2019 return that purported to be a “Federal K-1 Trust” form.

chl11942

When I click the link to print the pages for filing my 2020 federal tax return, TurboTax (TurboTax Deluxe Desktop) tells me there is an error in my return and that I cannot file my return yet. The “error” is that a Federal K-1 Trust form will not be available until February 25. I have received the Schedule K-1 from the attorney who filed the Form 1041 for a deceased parent’s estate. The trust was a single calendar year trust, and the Form 1041 is the final return for the trust. There were only 2 entries on the Schedule K-1 I received. Both were Box 11 items. TurboTax has correctly picked up both of these items and entered them in Form 1040 Schedule 1, Line 22 and Form 1040 Schedule D, Line 12 respectively. TurboTax also prepared a Schedule E, Page 2 for the trust. The only entry on Schedule E is a line in Part III with the trust’s Name and its EIN. I do not understand why I need to wait for TurboTax to provide a Federal K-1 Trust form before I file my tax return.

chl11942 · ‎January 14, 2021

They have forced me to update Mac OS every 2 years with TurboTax Download/CD for Mac.

chl11942 · ‎January 14, 2021

Thank you for this reply! I was struggling trying to force "ED67(e)" and an amount directly into Schedule 1, Line 22 until I zoomed in and took a close and saw that it should be done via the Smart Worksheet.

chl11942 · ‎December 21, 2020

Thank you for your informative and very helpful reply. Here is some material I just found in the instructions for Schedule K-1 for 2020 that appears to provide the answer. START OF BOX 11, CODE A INSTRUCTIONS - - Box 11, Code A—Excess Deductions on Termination - Section 67(e) Expenses If this is the final return of the estate or trust, and there are excess deductions on termination that are section 67(e) expenses reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code A, as an adjustment to income. Report this amount as a write-in on Schedule 1 (Form 1040), Part II, line 22. On the dotted line next to line 22, enter the amount of the expense using the code “ED67(e)”. Include the expense in the total amount reported on line 22. See Final Regulations - TD9918 , for examples of allowable excess deductions on termination of an estate or trust. Note. The regulations are applicable for tax years beginning after 2017. Excess deductions on termination occur only during the last tax year of the trust or decedent’s estate when the total deductions (excluding the charitable deduction and exemption) are greater than the gross income during that tax year. Only the beneficiary of an estate or trust that succeeds to its property is allowed to deduct that entity’s excess deductions on termination. A beneficiary who doesn’t have enough income in that year to absorb the entire deduction can’t carry the balance over to any succeeding year. END OF BOX 11, CODE A INSTRUCTIONS Turbo Tax will not let me enter the Box 11, Code A amount into Schedule 1 at this time. I expect this is one of the areas where Intuit still has work to do since the 2020 instructions for Schedule K-1 are dated Dec. 09, 2020. Again, thank you for your reply.

chl11942 · ‎December 20, 2020

The attorney who prepared the Form 1041 and Schedule K-1 for my mother’s estate called the following information from the IRS to my attention. IRS provides final regulations on deductions for estates and non- grantor trusts, including excess deductions on termination IR-2020-217, September 21, 2020 WASHINGTON — The Internal Revenue Service today issued final regulations ! that provide guidance for decedents' estates and non-grantor trusts clarifying that certain deductions of such estates and non-grantor trusts are not miscellaneous itemized deductions. The Tax Cuts and Jobs Acts (TCJA) prohibits individuals, estates, and non-grantor trusts from claiming miscellaneous itemized deductions for any taxable year beginning after December 31, 2017, and before January 1, 2026. Specifically, the final regulations clarify that the following deductions are allowable in figuring adjusted gross income and are not miscellaneous itemized deductions: Deductions for costs paid or incurred in connection with the administration of the estate or trust which would not have been incurred if the property were not held in such estate or non-grantor trust. The deduction concerning the personal exemption of an estate or non-grantor trust. The distribution deductions for trusts distributing current income. The distribution deductions for trusts accumulating income. In addition, the final regulations provide guidance on determining the character and amount of, as well as the manner for allocating, excess deductions that beneficiaries succeeding to the property of a terminated estate or non-grantor trust may claim on their individual income tax returns. For more information about this and other TCJA provisions, visit IRS.gov/taxreform . Page Last Reviewed or Updated: 19-Oct-2020 I am using Turbo Tax Deluxe for 2020 income tax returns. I have entered the Excess Deductions for my mother’s estate in the Box 11A (Excess Deductions) field of my Schedule K-1 information. I have also entered an amount in the Box 11C (Long-term Capital Loss Carryover) field of my Schedule K-1 information. Schedule D, Line 12 of my 2020 income tax return shows the Capital Loss reported in Box 11C of my Schedule K-1 information. But the Adjusted Gross Income shown on my Form 1040 for 2020 has not been reduced for the Excess Deductions reported in Box 11A of my Schedule K-1 information. Shouldn’t the Adjusted Gross Income on my Form 1040 be reduced for the Excess Deductions from my mother’s estate as provided by the final IRS regulations dealing with this matter?

Date Registered	‎December 20, 2020 2:03 PM
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