I am doing trust taxes for a beneficiary trust. In California Form 541, it asks the following question on page 2:
5. Did the estate or trust receive tax exempt income ? .................. ____Yes ____ No
If yes, attach computation of the allocation of expenses.
Turbotax Business 2019 is selecting the "No" box, when I'm pretty sure it should be "Yes".
I think this is a bug.
In form 1041, I entered dividends received, and it asks if a portion of it is U.S. government interest. I answered Yes, because the money market fund gets 75% of its income from federal obligations. So I multiplied the dividend total by 0.75 and entered that amount in the box for "U.S. Gov't interest". This amount is not taxable in California.
Therefore Turbotax should be selecting the "Yes" box on page 2 of Form 541 for the line that says "Did the estate or trust receive tax exempt income?" It's selecting "No" and that's a bug. Also, Turbotax creates the form called "Allocation of deductions for tax exempt income". So it knows I have tax exempt income for California. It just doesn't select the Yes box on Form 541.
How can this bug be reported to someone who can fix it ? If I go to the "Support" section of this website, it wants to connect me to an Expert. I don't need tax advice. I want to report a bug to customer support. They should have a bug report form that users can fill out.
Thank you for reporting. I have passed this along to the administration/moderation team.
Thanks for reaching out on the community!
In order to help us further investigate...would you be willing to send us a is a copy of your tax return that has all of your personal information removed? You can send one to us by following the directions below:
1. Click into your return.
2. Click Online and select "Send Tax File to Agent".
3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
4. Please provide the Token Number that was generated onto a response.
Thank you! I hope to hear from you soon.
GabiU