Discussion:Form 1041-Income Distribution Deduction

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I am wondering if Fed and State ES TAX payments should be included in Line 9-Income required to be distributed currently. My hunch is no, but I was wondering how others viewed this. Thank You.}} I am wondering if Fed and State ES TAX payments should be included in Line 9-Income required to be distributed currently. My hunch is no, but I was wondering how others viewed this. Thank You.}}
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 +{{ForumReplyPost|UserID=Bjeter|Date=29 March 2009|Text=Fed & State ES tax payments should only be included on line 9 of Schedule B if the payments are made on behalf of a beneficiary (not the trust itself) and the payments are required by the trust document. Otherwise, they can't go on a line that reads "income required to be distributed currently". If the ES payments are for the trust rather than the beneficiaries, obviously the Fed payments aren't deductible, and the state payments should be deducted on line 11 of page 1 of the 1041.
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Revision as of 01:30, 29 March 2009

Discussion Forum Index --> Advanced Tax Questions --> Form 1041-Income Distribution Deduction
Discussion Forum Index --> Tax Questions --> Form 1041-Income Distribution Deduction

Vman (talk|edits) said:

28 March 2009
Hello:

I am wondering if Fed and State ES TAX payments should be included in Line 9-Income required to be distributed currently. My hunch is no, but I was wondering how others viewed this. Thank You.

Bjeter (talk|edits) said:

29 March 2009
Fed & State ES tax payments should only be included on line 9 of Schedule B if the payments are made on behalf of a beneficiary (not the trust itself) and the payments are required by the trust document. Otherwise, they can't go on a line that reads "income required to be distributed currently". If the ES payments are for the trust rather than the beneficiaries, obviously the Fed payments aren't deductible, and the state payments should be deducted on line 11 of page 1 of the 1041.
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