I will be filing a 2019 form 1041 for a complex trust with a single beneficiary. This will be a final return for the trust as all principal and income was distributed to the beneficiary in 2019.
Dividend income was earned in the following tax years but was less than $600 so a tax return was not required per de minimus rules.
2014 $ 3.95
2015 $ 5.24
2016 $ 19.45
2017 $234.82
For 2018, a form 1041 was filed on dividend income of $617.57
For 2019, a FINAL form 1041 will be filed with dividend income of $504.45
My question:
Do I need to include the dividend income from 2017-2017 ($263.46) on the form 1041 and/or beneficiary's schedule K-1 so the beneficiary can pay any tax due? If so, where is this reported in TurboTax for business?
No. The tax return for 2019 will only include the dividend and other income received in 2019.
Please refer to the IRS Form 1041 Instructions, page 20 (link below) which indicates that Line 2a - Total Ordinary Dividends should "Report the estate's or Trust's share of all dividends received during the Tax Year.
Also, a quick reminder, please be sure to check for any carryovers from previous years and mark the return as "Final" so that the K-1's are marked Final also.