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April 11, 2024
Question

Form 1040 Schedule B line 8, I ticked "beneficiary of more than 50% of a foreign trust", why does TT mark me as a guarantor, tranferor, or receiving a distribution?

  • April 11, 2024
  • 1 reply
  • 0 views
Filling out the foreign accounts section in TurboTax, I ticked that I am a beneficiary of more than 50% of a foreign trust (I had a foreign pension whilst I lived abroad, which seems to be categorised as a foreign employee's trust). I did not tick that I received a distribution, or was a grantor, or transferor to in the year 2023. When looking at the generated return, I see TurboTax is selecting Yes on line 8, when the question states "During 2023, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust?". I've read the supporting IRS instructions, which again only mention these categories, not beneficiaries who didn't take a distribution.

I went back to the TurboTax Online form to check this is what I ticked, and it still shows I only ticked beneficiary, not the other options.

Am I misunderstanding the question on line 8, or is this a mistake in what TurboTax is generating?

1 reply

April 14, 2024

As of this weekend, it seems to have corrected itself, it now ticks "No". However, I'm still concerned given what was originally filed

DawnC
Employee
April 17, 2024

Is the refund or amount due any different now that the box is marked with NO?  

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November 21, 2024

No, this is purely for foreign reporting