@taxdean wrote:
I could imagine a trust that had beneficiaries in all 50 states!
State laws vary but what you stated is indeed possible and TurboTax will not direct you to file a return in a certain state (the trustee, or whoever is preparing the return) needs to know whether or not a return is required.
Typically, it is sufficient to issue a federal K-1 (1041) to the beneficiaries as any income will flow through to their federal tax returns and then to their state tax returns (if any).
