When I eliminate the state tax deduction at line 11, I get the right flow through to the beneficiary.  And while there is no separately stated state income tax deduction at line 11, the distribution deduction is increased by a like amount which from a bottom line standpoint is the right place to be.

Maybe that is the answer - eliminate the line item deduction for state taxes with a corresponding increase in the distribution deduction.  Net/net, the trust is where it should be as is the beneficiary although there is no separately stated state tax deduction at line 11.

I think that is how I will go.

Thanks.