Allocating FTB Tax Withheld to Trust Beneficiary (Form 592?)

[pefin]

Form 593 received from CA title co, which withheld State income tax from the sale of decedent's residence (should have been exempt from withholding but TTEE filled out the form himself).

Form 593 data (sale of property) inputted to Lacerte 2023 fiduciary income tax program (Screen 57.012). The only other option is Form 592-B which says data should be from 592-B "received" by fiduciary. There is no option to produce Form 592 which is the form required by FTB to allocate the withheld tax to a beneficiary. It's my understanding that Form 592 is filed with FTB and Trustee (TTEE) provides Form 592-B to the beneficiary who then applies for the credit on their individual CA income tax return. The sale generated a loss which was passed through to beneficiary. The Form 541 shows a refund of the tax withheld. How does the TTEE suppress the refund and allocate the tax withheld to the beneficiary to claim on Form 540?

Does TTEE have to generate and file a paper Form 592 outside of Lacerte and/or disregard the Form 593 input?

Is the Form 592-B input screen used, even if contrary to Lacerte's instructions?

Bottom Line: just trying to properly allocate the tax withheld to beneficiary rather than Trust. Any suggestions will be appreciated. Thanks.

[IRonMaN]

I don't do CA fiduciary returns, but if they have a refund coming, what's the difference if the estate gets it and writes a check to the beneficiary or the state pays the beneficiary?

[pefin]

The beneficiary may owe tax on personal return and incur late payment penalties/interest; however, this could be avoided if withholding credit is claimed.

I agree that otherwise the TTEE could just send the beneficiary a check for the refunded tax withheld.