How to enter exempt-interest dividends and more on Form 1041

Forum|Forum|3 years ago
February 12, 2023
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Hello,

This is the first time I am submitting Form 1041 for my niece's college education fund. I have two entries on a Form 1099-DIV for this trust that I don't know how/where to input them on Form 1041 or one of its subforms. The two entries I am referring to are Box 12, Exempt-interest dividends, and Box 13, Specified private activity bond interest dividends. I live in Colorado, and all the exempt-interest dividends earned are from a Colorado municipal bond fund. Therefore all the income in Box 12 and 13 is exempt from federal, state, and local taxes. I just can't find where I report this on Form 1041. Thanks in advance.

Not A Product Question

Anonymous_

Employee

Are you using TurboTax Business?

Using Forms Mode open your Interest and Dividend Income Worksheet and enter the figures as shown in the screenshot below.

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John E1Author

Thanks, but I am not using TT Business. I am filling out a paper form because this year's trust return is very basic.

Anonymous_

Employee

@John E1 wrote:

Thanks, but I am not using TT Business. I am filling out a paper form because this year's trust return is very basic.

Your tax-exempt dividends would be entered on page 3, Line 1 of Form 1041 in the Other Information section.

The private activity bond figure (Box 13) would be entered on Schedule I and then flow through to the beneficiary on Line 12 (A code) as an AMT adjustment on the K-1 (if a distribution is being made).