You'll need to sign in or create an account to connect with an expert.
"What is the difference between 1st & 2nd tier on a 1041 distribution??"
First tier distributions are distributions of current income that are required to be made according to the terms of the governing instrument
and the applicable local law (whether actually made or not).
Second tier distributions are any other amounts paid, credited, or required to be distributed (and actually distributed).
See https://www.irs.gov/instructions/i1041#idm139674712043984
"What is the difference between 1st & 2nd tier on a 1041 distribution??"
First tier distributions are distributions of current income that are required to be made according to the terms of the governing instrument
and the applicable local law (whether actually made or not).
Second tier distributions are any other amounts paid, credited, or required to be distributed (and actually distributed).
See https://www.irs.gov/instructions/i1041#idm139674712043984
What is the difference between 1st & 2nd tier on a 1041?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ashleyhudd229
New Member
magicstar41000-y
Level 2
5351ea506cfa
New Member
MojoMom777
Level 3
rpruiz23
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.