TurboTax Business will not allow the Trust to pay the income tax if I enter a distribution of principle ($0 Tier 1, some amount Tier 2) to beneficiaries. If I enter any amount in the Tier 2 distributions, TurboTax automatically flows the Trust income tax to the beneficiaries. (As a side note it correctly shows the Tier 2 distribution as non-taxable.) If I override the distribution percentage between the Trust and beneficiaries (100% trust, 0% beneficiaries) TurboTax does not flow the tax on income to the Trust. I am trying to do this as it is my understanding that distributions of principle are to be included on the beneficiary K-1. Beneficiaries have already filed taxes and it is a small income amount, so I want the Trust to pay the income tax rather than have everyone file an amendment.
