Form 1041 line 20 exemption - I was expecting the trust exemption to be $300 but it autofills 100. Is this a mistake, if so, how can I correct it.

[seganz]

I reviewed the IRS directions and for a trust that distributes all it's income, the exemption continues to be $300.

[tagteam · Accepted solution]

"Is this a mistake, if so, how can I correct it."

If the trust instrument requires that you, presumably as trustee, distribute all of the income currently, then the trust is entitled to a $300 exemption, regardless of whether the trust distributes additional amounts.

The problem is TurboTax assumes the trust is entitled to a $100 exemption if the trust is a complex trust and a $300 exemption if the trust is a simple trust and that is incorrect. You can, however, change the $100 exemption amount in Forms Mode by simply entering "300" in place of "100" directly on Form 1041 (see screenshot). 

[FlatTax-Advocate]

Turbo Tax also ADDS that number to income.  Shouldn't an exemption be subtracted from income?

[tagteam]

Yes, and TurboTax subtracts the exemption (along with other deductions) from Line 9, Total income.

[holmes0wr]

My 1041 leaves line 20 blank.  This is for an estate.  Why doesn't TT give me the $600 exemption?

[tagteam]

Enter Forms Mode and look at your 1041. Make sure the correct box is checked.