I filed state (CA) and federal taxes for a family trust for TY2019 (TurboTax Business/trust). They trust had income in 2019. I made distributions to the beneficiaries in 2019. There will be final distributions in 2020 since this is the year that the trust account will be closed.
I have two questions please,
1. I sent federal K-1's to all of the beneficiaries. It didn't occur to me until now, but should I also be sending the beneficiaries the California K-1 (541) as well?
2. On the California Fiduciary Income Tax Return 541, the line:
Taxable income of fiduciary. Subtract line 18 from line 17 is 0
I understand this to mean that each of the beneficiaries will pay CA tax on their respective portions of the trust income on the CA K-1 (and that the trust doesn't owe anything) . Is this correct?
