Schedule J

Forum|Forum|1 year ago
April 11, 2025
1 reply
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The balance in the trust is being distributed to the beneficiary, so it is the Final Return. Thus the distribution exceeds the trust's income for the year. I found this on line:

Form 1041 (Schedule J) is a form that one files with the IRS to report distributions from a complex trust above the proper distributions usually made, provided that the distributions exceed the trust's income for the year. Schedule J is filed along with Form 1041, and is used in calculating estate tax liability. Schedule J is used to report an accumulation distribution for a domestic complex trust that was treated as a foreign trust at any time or was created before March 1, 1984

How do I get Schedule J thru TT?

Hi Palms

Level 7

Why are you looking at some whacko web site and using it for reliable federal income tax information?

You do NOT need to complete Schedule J UNLESS the trust was:

Previously treated at any time as a foreign trust (unless an exception is provided in future regulations); or
Created before March 1, 1984, unless that trust would not be aggregated with other trusts under the rules of section 643(f) if that section applied to the trust.

See https://www.irs.gov/instructions/i1041#en_US_2024_publink100052920

jgs1947Author

Level 2

Well, I didn't come up with the reference to Schedule J on my own. My confusion about Accumulation Distribution took me down that rabbit hole. Now on the Interest and Dividend worksheet I have 0 of either, but it is showing 60, 75 and 100 under Box 5 which seems to lead the answer to 1 on Schedule G, Other Information, to be Yes which is incorrect. Any suggestions?