I'm the trustee for a trust doing its first and final CA Form 541. I'm required to file Federal because the trust had income, but in the CA Instructions it says (I've checked where applicable): The trustee may have to file a return if the trust meets any of these:The trustee or beneficiary (non-contingent) is a California resident ✓The trust has income from a California source ✓Income is distributed to a California resident beneficiary ✓And the trust has:Gross income is over $10,000 ✓Net income is over $100The net income on my federal return is actually negative number (a loss) due to loss on sales of bonds. The only thing distributed to beneficiaries was corpus (principal)Any ideas?

TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 3

Solved

CA Form 541 - Do I need to file??

Forum|Forum|3 years ago
March 7, 2023
1 reply
5 views

I'm the trustee for a trust doing its first and final CA Form 541. I'm required to file Federal because the trust had income, but in the CA Instructions it says (I've checked where applicable):

The trustee may have to file a return if the trust meets any of these:

The trustee or beneficiary (non-contingent) is a California resident ✓
The trust has income from a California source ✓
Income is distributed to a California resident beneficiary ✓

And the trust has:

Gross income is over $10,000 ✓
Net income is over $100

The net income on my federal return is actually negative number (a loss) due to loss on sales of bonds.

The only thing distributed to beneficiaries was corpus (principal)

Any ideas?

TurboTax Business Windows

Best answer by Vanessa A

Yes, you will need to file. Since you have a check mark next to gross income of more than $10,000, you will need to file. The net income does not come into play if your gross income is greater than $10,000.

You will need to file the 541 and distribute the k-1's which will include the distributions.

"Trust. The fiduciary (or one of the fiduciaries) must file Form 541 for a trust if any of the following apply:

Gross income for the taxable year of more than $10,000 (regardless of the amount of net income)
Net income for the taxable year of more than $100" CA 541 Instructions

Vanessa AAnswer

Level 15

You will need to file the 541 and distribute the k-1's which will include the distributions.

"Trust. The fiduciary (or one of the fiduciaries) must file Form 541 for a trust if any of the following apply:

Gross income for the taxable year of more than $10,000 (regardless of the amount of net income)
Net income for the taxable year of more than $100" CA 541 Instructions

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"