New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Why is Form 1041, Page 1, line 2b(1) not displaying 100 percent of the qualified dividends as allocated to a beneficiary?

Answer

For most returns, the calculation is based on a proportion of the income distributed on Form 1041, Page 2, Schedule B (line 11 / line 7). The following scenarios provide reasons why the allocation would be different.

• You've allocated qualified dividends differently in View > Beneficiary Information > Federal tab > Special Allocation button.
• Some of the qualified dividend amount is included on Form 4952, line 4g. To change the amount on Form 4952, line 4g, use one of the Treat all long-term capital gains and qualified dividends as investment income and Amount to include in investment income if not 100% fields on Screen Deduct in the Deductions folder.
  

Related topic: 1041-US: Beneficiary distribution calculations FAQs

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