Trust state business income tax required in Texas & K-1

[mganter47]

I have a trust with $500 of dividend income for 2023.  Why does turbotax state that I am required to file a state business income tax return in Texas?

Also, none of the dividend income was distributed.  Is a K-1 required?

[tagteam]

See https://comptroller.texas.gov/taxes/franchise/faq/taxable-entities.php

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@mganter47 wrote:

Also, none of the dividend income was distributed.  Is a K-1 required?

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No, not if the trust assumes any tax liability.