I am preparing an initial 1041 for a Family Trust.
The income is reported on Form 1099-R, along with Federal income tax withheld (box 4).
Question:
1) can the Federal income tax withheld be allocated to the beneficiaries?
2) if so, how is the allocation accomplished within the Proseries 1041 return?
Thank you for reading this!!
Is this a grantor trust, where everything should be entered on the grantor's return?
Sorry, I forgot to add it is the first year for a "Family Trust"
First year you are doing trust tax returns, also? "Family Trust" means nothing. If it's the typical Revocable Living Trust, it's a grantor trust. Read up on those in the 1041 instructions.
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