1041-US: Allocating federal tax withheld to beneficiaries (FAQ)

Alerts and notices
Leave feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Question

How do I allocate federal tax withheld to the beneficiary?

Answer

Per the form instructions, only backup withholding may be allocated to beneficiaries on Schedule K-1, line 13, box B. After the federal withholding has been entered on Screen Income, 1099M, 1099R, W2, W2G, PayExt, or K1-3, identify the portion that is section 3406 backup withholding in the first section on Screen Allocate in the Allocation folder. This portion is allocated to the beneficiaries based on the allocation method indicated (equal or percentage) and will be reported on their Schedule K-1 (Form 1041).

Related topic: 1041-US: Beneficiary allocations FAQs

Share This