1041-US: Form 1041, Page 1, line 2b(1) does not display 100 percent of qualified dividends to a beneficiary (FAQ)

Alerts and notices

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