I'm dealing with a complex trust. For the first time there's a distribution to a beneficiary.  The trust has roughly 200K in qualified dividends and 750K in capital gains, 150K in deductions.

With NO distributions entered, 100% of the the qualified dividends show up on D, page 2, Part V, line 23.  If I enter a specific cash distribution (Required or Other), the amount on Line 23 drops by over 9K for every 1K of ordinary distributions. By the time I reach the actual 20K distribution, Line 23 is zero. And taxes have increased by over 10K.

The same thing happens if I enter a % distribution.

I don't see how this can be correct.  Any clues??