Preparing 2023 1041 for complex trust (not final year) with $11k Federal and $4k state K-1 pass through of 2022 estimated taxes from grandparent's 645 estate/trust. In addition, this complex trust made 4th qtr. 2023 estimated payments of $12k Federal and $6k to state. Want to allocate all estimated payments to the beneficiary. Despite entering $12k/$6k applied to beneficiary, and filling out 1041-T for Code 2 $23k and 541-T for $10k in software, the 2023 payments aren't allocating out to beneficiary on 1041 and 541 return. However, both form 1041-T and K-1 shows $12k; while form 541-T and K-1 shows $6k. I realize I can use the K-1 override feature to get the amounts correct on K-1, but the 1041 is applying $11k refund and 541 doesn't even pick up the $6k and shows $4k refund. Tech support wasn't able to help. Any suggestions would be appreciated.
Best Answer Click here
The problem relates to the fact that technically you aren't supposed to be able to transfer the estimates to the beneficiaries.
Hmm, thanks IronMan. However, IRC code 643(g) "A trust or, for its final tax year, a decedent’s estate may elect under section 643(g) to have any part of its estimated tax payments (but not
income tax withheld) treated as made by a beneficiary or beneficiaries." Might have to be content with allocating only the Spend Thrift trust payments to it's beneficiary.
Thank you for your help!
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.