Colorado State Tax Error (Trust)

Forum|Forum|4 years ago
February 23, 2022
7 replies
70 views

There appears to be an error in the Colorado State Tax (Business/State) edition when complex trusts distribute income and principle or have a charitable distribution.

The denominator for the calculations on the Colorado Sch K-1 Line 1 is from form 1041, Schedule B, Line 7 (Distributable Net Income).

The numerator for the calculations on the Colorado Sch K-1 Line 1 is a proportion of Line 1 from form Colorado K-1 Worksheet which comes from 1041, Schedule B, Line 10 (Total Distribution). This is the error. This proportion should also be from form 1041, Schedule B, Line 7 (Distributable Net Income) per the Form 105 book and to maintain unity in the calculations in Schedule B.

The current implementation only works for simple trusts that only distribute up to the Distributable Net Income and do not make charitable contributions.

See "Colorado Form 105, p3-4: Sch B subtotal percent should not be greater than 100%" for a detailed example.

TurboTax Support: Please correct this issue in TurboTax Business or explain where I am mistaken.

TurboTax Business Windows

Anonymous_

Level 15

You should contact Support (via the link below) directly.

What is the TurboTax phone number? (intuit.com)

Christopher00Author

Level 3

I tried the phone number 4 times. The person just says it sounds like a financial advisor needs to look at it. Then sends me to a financial advisor who is not allowed to help with TurboTax Business. The help line has been less than helpful for TurboTax Business.

Anonymous_

Level 15

You might want to try again and request technical assistance (software programming) rather than making it out to be a tax issue. Support for tax issues (or advice) is not available for TurboTax Business, but support is provided for programming and data entry issues.

JohnWS

Level 2

Followup: I was able to get through today (3/29) (after at least 2 transfers) to a representative that was able to understand the problem and see that it has been reported by other users. This rep will forward the information to the responsible team. No promises on a time frame for a fix, however.

In my own case, I can work around the issue by setting Line 10 in form 1041 schedule B to zero, then calculating and printing the Colorado return (filed by postal mail), and then restoring the proper value on line 10 of schedule B on the 1041 form and re-calculating/reviewing for Federal e-filing.

Anonymous_

Level 15

@JohnWS wrote:

No promises on a time frame for a fix, however.

Hopefully, the fix will not involve the cessation of offering the Colorado Fiduciary return.

It seems as if the list grows larger every year. At least count, I think there were roughly 30 states that TurboTax Business did not support (for fiduciary income tax returns).