Using TT Business, I am preparing tax forms for a simple trust. In the previous year this was done by a CPA. The previous year had a tax refund which was applied to this year. I reported this income on line 8 in the income section, Income other. I also included this along with estimated tax payments on line 11 of expenses, Taxes.
In reviewing how this was handled last year by the CPA where the trust also had applied a previous years refund, the was a page on the tax returns titled "Expense Allocation by Income Type, where the refund tax expense was allocated against and fully consumed the Income other. How can I accomplish this allocation of expenses in TT. Currently TT is allocating all expenses on a proportion to the income type. This results in very little expense allocated to income other so that unconsumed income other is on the K-1, along with a corresponding (negative) type H amount on line 14. In the previous year done by a CPA both there was no income other or type H reported.
