1041 Schedule G for Estate

[keyvie]

I have an amount coming up on line 1a.  I am confused why there is an amount here.  We did a total distribution for the K-1.  Where is this amount coming from or even why? Thank you.  

[M-MTax]

Are you sure you distributed ALL of the income, including capital gains? What's on Line 23 of your 1041?

[keyvie]

line 17 shows 37,696

line 18 shows 32,375

line 23 shows 4,721

line 24 shows 727

K-1's distribution was divided have to 2 people from line 18

I am confused on this.  Hope this info is helpful.  Thanks.  

[NCperson]

@keyvie are those the numbers from form 1041? 

if you are completing you person tax return (form 1040), you just data enter the amounts on the K-1. 

You do not enter form 1041 on to your personal tax return.  

The Trustee is responsible for completing and submitting Form 1041. 

[keyvie]

The taxes are for the estate not for personal.  Why would I have AMT added to the estate return? I am confused.  Thanks

[NCperson]

@keyvie look at Schedule I (the letter not the number).  That is were AMT is calculated.  Who prepared the 1041 tax return? 

[keyvie]

I am doing the taxes for the estate.  I am the executor.  I do not understand why there would be an AMT amount.  Also, I was wondering for the K-1's turbo tax business does not calculate it automatically.  

[NCperson]

@keyvie advice: since completing a tax return for an estate is normally a "once and done" affair, it may be best to let a professional do it.  

You'll live longer....... 😉

[M-MTax]

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@keyvie wrote:

line 17 shows 37,696

line 18 shows 32,375

line 23 shows 4,721

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Line 18 indicates that you did not distribute all income and gains based upon Line 17. Therefore you have taxable income of $4721. Sch G Line 1 is the tax based on Line 23. Turbotax throws a Sch I in apparently for some reason. The estate probably is not even subject to AMT......need more info but probably not.

[keyvie]

@M-MTax -Thanks.  I am using turbo tax business so I can generate a K-1's for an estate.  The software does not generate the amount for distribution when I get to the K-1's.  How do I know what amount I would distribute? I am confused about the AMT.  Any suggestion on what I can do about that? Thanks.  

[M-MTax]

IIRC, you have to enter the exact amount of the distribution for an estate return in TT Business. That would include capital gain which...again IIRC....TT doesn't pass through until the final return.

[M-MTax]

And what does your Sch I show.....if you have one?

[M-MTax]

I am confused about the AMT.

Don't worry about it unless your Line 27 on your Sch I is more than $28,400

[keyvie]

@M-MTax -Sch I on line 27 shows $5,321.   Unfortunately, this is not the final 1041.  I still need to complete another one for 2024.  Since I answered the question "Is this the final return" as No, is that why the amount does not carry over or is that just how the software is? Sorry for all the questions.  

[M-MTax]

It's not over $28,400 so there's no AMT. There's no carryover for that.