i have credit shelter that files as a simple trust . I have distributions , federal tax deduction and state tax deduction. how do Where do I enter the federal tax deduction?

I entered t he distribution amount in the section. what section does the for federal tax belong?

the problem is thubmitted ti this is a Beneficially IRA . The Tax was submitted  to the IRS and heas returned. how?

thanks

I went and changed the distribution scheme from percentages to the exact amount of interest/dividends and it made no change to the amount of tax the Trust owed or to the amount distributed (zero) on the K1. I guess I have to learn how to do this by hand. Not only is it a Simple trust, it's a simple trust with one bank account.

And yes, I know the difference between the Simple and Complex Trust. I am not trying to distribute capitol gains only interest and dividend income.

Instead of double taxation this year I'll send the IRS a check with an extension so I can figure out what is going on here.

Thanks

@bigdav160 Enter Forms Mode, open one of your K-1s, and ensure that there is a percentage in Part B of the Beneficiary's Allocation Smart Worksheet.

Thanks tagteam but the percentages are there on the form.

Just under that (part 3) should those lines be blank?

Should the K-1 Worksheet be blank? Form - Distributable Income for Schedule K-1 does show amounts in line 1 and 2. It's part 2 of that form where the amounts get zeroed out and I am not sure what all those numbers represent.  I would guess the answer to my question is in there.

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@bigdav160 wrote:

Just under that (part 3) should those lines be blank?

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No, Part III should not be blank if you distributed interest and dividend income to the beneficiaries.

Frankly, I am not certain as to precisely what is occurring in your case, but the income should be flowing through to your K-1s if you made a distribution in the program.