@scooter123 - Generally, first tier distributions are distributions of income required to be distributed currently, whether they are actually distributed or not. Second tier distributions are, essentially, **all other** distributions so it appears as if the "excess" is, in fact, second tier (as you indicated, not that it matters in this particular instance).
Re that error check, I am not familiar with trust taxation in California but, with respect to federal income taxation, Schedule J is only used to report an accumulation distribution for certain trusts that were treated foreign trusts and certain trusts that were created before March 1, 1984.
