We are filing a first return for a Special Needs Trust. The trust received several RMDs from a deceased parent and taxes were withheld. I want the Trust to take the full distribution and pay the taxes as the beneficiary. There is no money going to an individual - it is all going to the Trust. I'm using Turbotax Business and I cannot figure out how to change the allocation from 0 to a beneficiary and 100% to the Trust. What am I missing?
I am in no way certain what you are trying to accomplish, but it should be a simple matter to avoid allocating any income to the beneficiary by not making a distribution to that beneficiary (i.e., indicate that the trust did not make distributions).
Did you, by any chance, indicate that the trust was a simple trust in the General Info>>>About Your Trust or Estate section?
Thanks for the quick reply. Yes, I set it up as a simple trust.
I also have set up 0 on the Beneficiary's Allocation worksheet on the K-1 but on the 1041 shows the entire RMD as
but on the 1041 is shows 100% going to a Beneficiary not the Estate.
My mistake was calling it a Simple Trust. It is a Qualified Disability Trust. That made things right.
an important question is what does the trust say about beneficiary distributions? if required then the minimum amount must go out on the k-1 to the beneficiary.