BobKamman
Level 15
01-06-2023
01:22 PM
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First make sure the trust allows that. The default is usually allocation to the trust -- and unlike ordinary income, that often does not result in a higher amount of tax owed.
I don't have the program open right now but there's a place on the 1041 Schedule D input page for switching allocation to beneficiaries, if that's what the law requires.