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Income tax withheld on trust income reported on Form 1099-R

acitrola
Level 2

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!!

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3 Comments 3
BobKamman
Level 15

Is this a grantor trust, where everything should be entered on the grantor's return?

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acitrola
Level 2

Sorry, I forgot to add it is the first year for a "Family Trust"

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BobKamman
Level 15

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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