Distribute federal tax withheld to a beneficiary
According to the form instructions, you can only allocate backup withholding to beneficiaries. Refer to Schedule K-1 for the backup holding amount.
- Enter the federal withholding on the activity (in theIncome,Broker,1099M,1099R,W2,W2G,PayExt, orK1-3screens).
- Select theAllocationfolder, then theAllocatetab.
- Enter the number from Schedule K-1, line 13, box B inSection 3406 backup withholding allocated to beneficiaries.noteThis portion is allocated to the beneficiaries based on the allocation method indicated (equal or percentage).
