California 541-K1

[LindaBelmont]

I am in the process of settling my late husband’s estate. It is a North Carolina estate with California beneficiaries. I am using Turbo tax business program with the California fiduciary extension. I have entered all the data in the 1041. When I look at the California 541-K1, Line 2, column B (income- dividends) shows the correct amount as reported on the 1041 form.  Column C (California adjustment) totally subtracts out the amount in Column B.  I have read both the instructions for 541-K1 and the FTB 1001 (supplement to California adjustments) and can not find anything indicating  that all dividends should be adjusted out. This 541-K1 is for a California beneficiary.  As a test, I tried adjusting the qualified dividends and that did not make any difference. All dividends are adjusted out.  What am I missing?

Thanks

[LindaBelmont · Accepted solution]

Issue resolved.

Apparently I had to flip to forms mode and include capital gains on the 541distribution form. The 1041 K1 and the California 541 K1 now have the same amounts of reportable income.