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Level 2
posted Apr 11, 2025 11:27:23 AM

Schedule J

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?

 

0 5 1419
5 Replies
Level 6
Apr 11, 2025 1:30:48 PM

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

Level 2
Apr 11, 2025 4:18:13 PM

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?

Level 2
Apr 11, 2025 4:19:49 PM

I did look at the same link you provided and was still confused by the reference to Accumulation Distribution

Level 6
Apr 11, 2025 6:10:35 PM

Let me simplify:

If your trust was NEVER previously treated as a foreign trust OR was NOT created before March 1, 1984, then you do NOT need to complete Schedule J.

Level 2
Apr 12, 2025 5:26:27 PM

Thank you.