The form 1041 is the tax return form for an estate or trust. Income generated by the trust or estate is reduced by fiduciary, legal, and accounting fees to come to distributable net income (DNI). This amount is then available for distribution to beneficiaries. The amount of income distributed is reported on the form 1041 K1 issued by the trust to the beneficiaries. The beneficiary then must report the income amounts reported on the 1041 K1 on their 1040 individual tax return. This is where the problem is as the ability to input the K1 for estates and trust into TurboTax is not available until 2/25.
You must upgrade to Premier if you are going to input an estate or trust form 1041 K1 into your personal tax return. The Trust 1041 tax return can not be generated in TurboTax Online is only available in TurboTax Business Desktop product.
