I am the trustee of a complex trust that is required to distribute all income, but is also allowed to distribute principle. Turbo tax enters $100 on Line 21, but I believe it should be $300.
According to the IRS website for line 21:
Trusts required to distribute all in-
come currently. A trust whose
governing instrument requires that all
income be distributed currently is
allowed a $300 exemption, even if it
distributed amounts other than income
during the tax year.
Is Turbotax wrong?
