That is my concern. I'm not sure when the refund is actually coming in the process. If the estate has income over $600 in the next tax year, it is my understanding that I will have to complete another 1041. The trust has not been refunded yet and we are in the next tax year and the amount is well over $600. That is the reason I thought of correcting the mistake while I still can by amending the return where I unfortunately deducted the entire amount I put in the trust that year. This way the IOLTA refund is no longer income because it will not have been used as a deduction.
I am not an accountant - I am just thinking this through logically with what I know. But if there is something missing in my thought process, I can potentially make this worse. So - I ask the experts on here - am I missing something in my thought process?
Thank you.
Thank you for the assistance.
