DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

Reply
Pioneer
Posts: 1
Registered: ‎04-22-2018

H&R Block Business 2017and K-1 Income statements

I have been using H&R Business software for a few years filing a trust return. This year I need to start a new trust and I find H&R software can not handle K-1 Income information for a trust!

I buy tax software expecting to enter my tax document information and have the program fill the appropriate forms and preform any necessary calculations. After entering my information, H&R showed the trust having -478.00 taxable income!

After overriding just about ALL the software inputs (including a foreign tax credit H&R put in the 1041 that a trust is not eligible to claim...) I need to generate a distribution K-1 to the tune of $30,000 to zero out the trusts income!

Well past the 60 day guarantee and no help from the online help, they will not answer any question definitely. Always you can, could or you are able to enter whatever you want.

 

My last ditch effort before kicking H&R to the curb is to print out this return and have a local office check it out. I hope the cost will be covered , but I doubt it will.

Valued Pioneer
Posts: 3
Registered: ‎05-03-2018

Re: H&R Block Business 2017and K-1 Income statements

I hope you found some answers with the local HR Block office.  I've used the HR Block downloadable business software for multiple Form 1041 trust returns for several years and I've had income K-1s from Master Limited Partnerships as part of the Trust investment income in each of those years.  The software will handle many of them, but some entries on a K1 are not connected to any calculations within the software, so large investments in energy companies which report large depletion allowances (as one example of many) on their K1 are not easy to handle in the consumer Business software.  

 

There's a reason most accountants will charge over $100 per K1 on a business or Trust tax return - it's because they can be labor intensive to deal with.   TaxCut consumer software for business does give you a path to manually fill out forms required to report certain fields on a K1, but you have to read IRS instructions to know what forms to pull up and manually complete.  I haven't found the Intuit software to be any better in this regard.  There are limits to how much of the Tax Code is actually implemented in this consumer software.  Unfortunately, those limits are not clearly documented up front (probably because it would require several thousand pages given the sorry state of the Tax Code. )    Once you're in the program, it is clear when an entry is just that - an entry that is not connected to any calculations or other forms.  When that happens, it's time to grab some coffee and go to the IRS web site for instructions.