Estimated Tax for Estate Filing - California

[tootsaroo]

I have been using TurboTax Business to file a California Estate Tax Return since 2008.

All income (100%) passes through the estate and is distributed to the beneficiary; therefore, the estate never owes any taxes. When the return is complete, TurboTax creates a K-1 to document the income and distribution to the beneficiary. The beneficiary makes quarterly tax payments to the State.

This year, TurboTax is showing a line for estimated taxes owed by the trust.  In the 14 years using TurboTax for this filing, this is the first time I am seeing this.  I do not find any change in the California Tax Code.

If all income is distributed to the beneficiary, why would the trust be required to pay any tax?

[Anonymous_]

---

@tootsaroo wrote:

If all income is distributed to the beneficiary, why would the trust be required to pay any tax?

---

It should not. There is either an input error or all of the income (gain) was not distributed.

You should check your return in Forms Mode.

[tootsaroo]

Just to be clear, TT is showing ESTIMATED TAXES for 2022; NOT taxes due for 2021.

I've reviewed the forms and compared the income reported on the K-1 to the distribution to the beneficiary.  This is not the problem.

[Anonymous_]

Is what you are seeing the Estimated Tax Worksheet (which is typical) or all of the 1041-ES vouchers?

Also, are the estimated taxes shown on the federal side or just for California?