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posted Feb 28, 2025 4:05:08 PM

Schedule 1041 line 23 (Taxable Income) is a negative number, cant e-file

Hello,

I am preparing a final trust return. Schedule 1041, line 23 (Taxable Income) is a negative number. This prevents me from electronic filing. Is there a way to allocate this loss to beneficiaries on a k-1 in Turbotax? I cannot use the loss for previous years, as I had no income in those years either. Thank you. 

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1 Replies
Level 12
Feb 28, 2025 5:32:43 PM

The only negative number you should be seeing on the final return on Line 23 should be as result of the trust's exemption. 

 

If there is a net loss somewhere (such as an NOL), that should have been distributed to the beneficiaries on their K-1s and should not appear on Line 23, assuming a correct distribution was made.