Capital gains taxed at 27 percent?

[slowreader]

Good morning. I have distributed all interest and dividend income from a trust to its beneficiaries, leaving $14,267 in long-term capital gains on Schedule D to be taxed to the trust. In Form 1041, I am shown taxes due of $3,881, or 27%.

Long-term capital gains for 2023 are supposed to be taxed at 0% for the first $3000, 15% between $3000 and $14,649, and 20% thereafter. So I figure that leaves $11,267 to be taxed at 15%, or $1,690.05.

On Schedule D, I see references to Schedule G and Form 990-T, but neither of those comes up when I search for them.

What am I doing wrong? Or, as it seems to me, what is TurboTax doing wrong?

Thanks! - Dan

[tagteam]

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@slowreader wrote:

What am I doing wrong? Or, as it seems to me, what is TurboTax doing wrong?

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Not sure, but on a test return with your figures ($14,367 - $100 trust exemption), I am getting $1690 (see screenshot).

[Mike9241]

schedule G is on page 2 of the 1041.

this forum has no access to your return.  contact support.

[slowreader]

Thanks for confirming my back-of-envelope calculation that I owe $1690! I'll compare your Part V with what TTax is showing me, and maybe that will provide some light. - Dan

[slowreader]

Okay, figured it out! I didn't distribute enough money in the two K-1s for the beneficiaries of the trust, with the result that there was a bunch of dividend income to be taxed to the trust. All is okay now; thanks to those who responded.