I’m the trustee of an irrevocable trust. The trust was dissolved in 6/2024. I withdrew $250 for tax filing costs and distributed all remaining funds (45K) 50/50 to the two bene’s ($22,500 each)
Ive filed and paid taxes using TT Business using the trust’s funds for all prior years and never sent K-1s to the bene’s as they never received a penny until the trust was dissolved.
TT is trying to use the short/long term gains from the 1099 as the trusts “income” for 2024. That’s correct. But it assumes I distributed 9K to the bene’s, not 45K.
if I put in the actual $ amt distributed instead of the 9K of only 2024’s gains, the K-1’s for the bene’s aren’t reporting the total amt distributed to each bene.
1. What should the K1 look like and how do I convince TT to do it right?
2. TT also asks me to complete schedule J because the amount distributed (45K) is greater than 2024’s “income” (9K). But then leaves me hanging as to how to do that. Do I need to and if so, how do I complete it?
Help please! I thought this product would be user friendly but it leaves me scratching my head
Go back to where you entered the information about each beneficiary. There is a section there that asks for cash distributions for each beneficiary. Enter the total cash distributed there.