TAX PAYMENT DISTRIBUTED TO K-1 ON TRUST RETURN

[kathyclubb]

I am trying to apply the tax payments that are not estimated taxes to the K-1s of a trust.  The only option that I am finding is to get a refund instead of allowing them to pass to the beneficiaries.  Has anyone else run into this?

[Just-Lisa-Now-]

I dont think you can distribute withholding out to the K-1s.  At least Ive never been able to find a way.   

I have them file a 1041 as early in the season as possible, then distribute the refund of withholding to the benes to help them pay their taxes.

[BobKamman]

Line 14—Federal Income Tax Withheld

Use line 14 to claim a credit for any federal income tax
withheld (and not repaid) by (a) an employer on wages and
salaries of a decedent received by the decedent's estate; (b)
a payer of certain gambling winnings (for example, state
lottery winnings); or (c) a payer of distributions from
pensions, annuities, retirement or profit-sharing plans, IRAs,
insurance contracts, etc., received by a decedent's estate or
trust. Attach a copy of Form W-2, Form W-2G, or Form
1099-R to the front of the return.

Except for backup withholding (as explained below),
withheld income tax can't be passed through to
beneficiaries on either Schedule K-1 or Form 1041-T.

Backup withholding. If the estate or trust received a 2022
Form 1099 showing federal income tax withheld (that is,
backup withholding) on interest income, dividends, or other
income, check the box and include the amount withheld on
income retained by the estate or trust in the total for line 14.
Report in box 13, code B, of Schedule K-1 (Form 1041)
any credit for backup withholding on income distributed to
the beneficiary.