1041-US: Distribute withholding to a beneficiary (FAQ)

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How do I allocate federal tax withheld to the beneficiary?


Per the form instructions, only backup withholding may be allocated to beneficiaries. See Schedule K-1 for the backup holding amount.

  1. Enter the federal withholding on the appropriate activity (in the Income, Broker, 1099M, 1099R, W2, W2G, PayExt, or K1-3 screens).
  2. Select the Allocation folder, then the Allocate tab.
  3. Enter the number from Schedule K-1, line 13, box B in the Section 3406 backup withholding allocated to beneficiaries field.

Note: This portion is allocated to the beneficiaries based on the allocation method indicated (equal or percentage).

Related topic: 1041-US: Beneficiary allocations FAQs

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