I'm finishing a 1041 trust return with Form 1041-T to allocate estimated tax overpayments to the beneficiaries. Just before getting to file, Turbotax Business threw up a message saying the following:
"You elected to allocate some of the estate or trust's estimated tax payments to the beneficiaries. Review your return to be sure that the amounts you allocated to the beneficiaries are included on Form 1041, page 2, Schedule B, line 10 (Other amounts paid, credited, or otherwise required to be distributed) and on Schedule K-1, line 13, code A, for each beneficiary."
I don't get it. There is nothing on Schedule B, line 10. If this amount is supposed to go there, why didn't Turbotax put it there? Furthermore, I did the same thing on a second 1041 return for a separate trust (i.e. also filed with form 1041-T). Turbotax didn't pop up this message on that one, and upon inspection, nothing flowed to Schedule B, line 10 on that return, either.
What is this line for, anyway? Should I write the amount of estimated tax I'm electing to allocate there? Will doing so change anything on any other lines, or change the amount of tax owed? I don't want to double-pay on something because of doing this.
The beneficiary K-1s appear correct. The amount allocated to each beneficiary is shown on line 13, code A. So if the 1041 return includes the form 1041-T, and the K-1s show the corresponding amounts in the right place, what's Schedule B, line 10 needed for?
