First, the trust document must distinguish what is distributable to the beneficiaries. If you are clear on the rules for this Irrevocable Trust then you are using the correct figures for the lines mentioned. Any taxable income not distributed will be taxable to the trust.
- Estates and trusts are entitled to deduct from their income any distribution of income that they are required to distribute (under the governing instrument or state law) or actually pay or credit to a beneficiary. This means the beneficiaries will pay the tax on the distributions paid to them.
- PA-41 Instructions
- PA Schedule DD and Instructions
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