topic K1 For A Trust Beneficiary Not Computing Properly? in Get your taxes done using TurboTax

K1 For A Trust Beneficiary Not Computing Properly?

mcoming — Wed, 12 Mar 2025 12:03:07 GMT

Hi,

I am the fiduciary for a complex trust with only one beneficiary. I have entered all the data from 1099-INT, 1099-DIV, and 1099-B - and set up the distribution to be 100% to my sole beneficiary. However, when TurboTax generates the K1 for this beneficiary the Interest and Dividend amounts reported are completely different than what is showing on the 1041 for the trust - I have no idea where these amounts are coming from! The trust also received a RMD from an inherited IRA which I entered as Other income from a 1099-R and this amount shows up correctly in the 1041 but a completely different number shows up on Part III line 5 of the K1. What is happening? Thanks for any and all help!!!

Mark

Re: K1 For A Trust Beneficiary Not Computing Properly?

M-MTax — Wed, 12 Mar 2025 16:53:22 GMT

No one here can see your 1041 (or K-1) so it would be difficult to answer your question accurately without more information.

First of all, do you have any deductions? Obviously, that would have an impact on your K-1 totals.

Also, are you certain you distributed all of the income to your beneficiary? Check the forms in forms view against your 1099s.

Re: K1 For A Trust Beneficiary Not Computing Properly?

mcoming — Wed, 12 Mar 2025 17:40:25 GMT

Hi, thanks for your response. There are no deductions. The amounts appearing on the K1 for Interest, Ordinary and qualified dividends, and Other porfolio and non business income are all higher than the correct amounts as reported on the various 1099s. The 1041 shows the correct amounts - as far as I can tell the error seems to be coming in on the fomr Dist Inc K-1 which is an automatically populated form - but in the Part II of that form - Allocations to Income all the correct numbers are in line 1 - Income, the subtotal on Line 10 is correct - the total distributable on Line 13 is correct - but Line 14 - amount distributable to beneficiary shows increased amounts in every column - increased over what was on Line 1, 10, or 13. Line 14 is what ends up being transferred to the K1 and I cannot for the life of me figure out where that difference is coming from. Hope that helps.

Mark

Re: K1 For A Trust Beneficiary Not Computing Properly?

M-MTax — Wed, 12 Mar 2025 17:51:09 GMT

Sorry to say that the additional information really doesn't help much on this board. There is clearly some sort of input error which customer support should be able to resolve for you. At least they can diagnose the issue probably in short order.

Re: K1 For A Trust Beneficiary Not Computing Properly?

PatriciaV — Sat, 15 Mar 2025 00:28:07 GMT

It would be helpful to have a TurboTax ".tax2024" file to test this issue further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions:

In TurboTax Business, open your return and go to Online in the TurboTax header.

Choose Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you.
Please include any States that are part of your return - this is VERY important.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution.

Re: K1 For A Trust Beneficiary Not Computing Properly?

helpminda — Sun, 13 Apr 2025 04:44:26 GMT

Did this get resolved? I'm having the exact same issue.