Turbo Tax Business left 1041 Line 21 Exemption blank when I used my actual trust accounting data - short year with both initial and final return checked. I believe it should have been $100 for a standard Complex Trust that was not required to distribute all the income currently, even though it did.
Testing a few scenarios found that the program will fill in $100 if I uncheck Final Return.
The On Demand Tax Guidance correctly explains that the exemption amount is determined by the type of entity from Line A. Are there rules about short years or final returns that are not mentioned or explained in the help?
The program allows me to fill in Line 21 manually without flagging an error. Is that how the program should work?
How does Turbo Tax Biz calculate the automatic exemption on 1041 Line 21?
Are there rules about short years or final returns that are not mentioned or explained in the help?
Not sure about the "help" in TT Biz but on the final return an exemption is not needed since everything in the trust is supposed to be distributed out to the beneficiaries. Therefore you don't need an exemption.....you get an income distribution deduction.
Are there rules about short years or final returns that are not mentioned or explained in the help?
Not sure about the "help" in TT Biz but on the final return an exemption is not needed since everything in the trust is supposed to be distributed out to the beneficiaries. Therefore you don't need an exemption.....you get an income distribution deduction.