The trust is a complex trust giving the ability to the trustee to distribute the income and capital however she prefers. The trust distributed $63,830.83 of the $67,306 income + capital gains, of which $19,400 was tax-exempt income and approx. $16,000 was long-term capital gains. Turbo-tax is trying to say the trust owes $2361 in taxes, but the tax-exempt income should have been distributed to the beneficiaries last. How can I do this in TurboTax?
