Simple Trust distribution to beneficiaries. Turbo tax will not allow ALL income to be distributed and showing the Trust to pay income taxes. How do I fix this problem?

[thomasuehling150]

Turbo Tax Programming Error.  I have a Simple Trust whereas ALL income is to be distributed to beneficiaries.  Turbo tax shows where the Simple Trust is to pay income tax on a portion of the income.

[tagteam]

"How do I fix this problem?"

In your case, you need to go back to the Income section and enter the entire amount of capital gains as "Capital Gains Attributable to Income" (see screenshot). Thereafter, you will have to distribute all income (in the Distribution section) to your beneficiaries. 

Note that the type of trust will invariably change to Complex, so you will then have to go back to the beginning of the interview and specifically select Simple Trust.

[thomasuehling150]

Thank you SO MUCH!!!!  I thought I was losing my mind!!!

[tagteam]

You are most welcome.

[Foolishtom]

Hello Champ,

Having trouble with the same problem. Cannot see screen shot where the income section allows to pinpoint Capital Gains Attributable to Income"to trust income. All income is distributed to the beneficiary and 100% is recorded.

Line 2a) 22,630.00  line 2b qualified dividends 1) beneficiary 14,328.00     2) Estate or Trust 1,593.00

line 4) 4247

The trust earned no interest. Paid out 100% to beneficiary as noted on K-1.

Thanks Champ.

Tom