Greetings all.
So I am completing a return for a Trust in TT Business, and got all the way through without too much difficulty (been doing this Trust for the past 4 years) and I get to the end and TurboTax found an issue as follows:
Form 1116 (COPY 1) – Explanation Stm: Detailed Explanation must be completed. Enter your explanation here to complete the required statement. It must show the other deduction items for Line 3B column A.
Line 3b Column A says “Other Deductions” (attach statement). The amount is ~ $7000, which must be a number that TT generated, I don’t recognize it as anything that I’ve entered.
There are 2 beneficiaries for this Trust, the distribution is split 50/50, and on the beneficiary's K1, Line 14 – Other Information has a code “E” = $3500 (which is obviously 50% of the $7000 shown on Form 1116.)
According to the instructions, Code E for Line 14 = “Net Investment Income”, and refers me to Form 4952 Line 4a.
However, Line 4952 Line 4a = $12,000, not $7000.
I did however find the $7000 on Form 1041 Line 18, Income Distribution Deduction (from Schedule B line 15). Unfortunately this return has no Schedule B that I can see.
If anyone can shed some light on how I go about coming up with the information TT is asking for here it would be most appreciated.
I’ve read other posts on this forum related to this issue, but they all seem to relate to foreign taxes, and I only earned like $200 from foreign sources, so it doesn’t seem like that’s the case here.
Thanking you all in advance for any input.
