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Form 1041 line 20 exemption - I was expecting the trust exemption to be $300 but it autofills 100. Is this a mistake, if so, how can I correct it.

Forum|Forum|7 years ago
June 5, 2019
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I reviewed the IRS directions and for a trust that distributes all it's income, the exemption continues to be $300.

TurboTax Business Windows

Best answer by Anonymous_

"Is this a mistake, if so, how can I correct it."

If the trust instrument requires that you, presumably as trustee, distribute all of the income currently, then the trust is entitled to a $300 exemption, regardless of whether the trust distributes additional amounts.

The problem is TurboTax assumes the trust is entitled to a $100 exemption if the trust is a complex trust and a $300 exemption if the trust is a simple trust and that is incorrect. You can, however, change the $100 exemption amount in Forms Mode by simply entering "300" in place of "100" directly on Form 1041 (see screenshot).

A

Anonymous_Answer

Employee

"Is this a mistake, if so, how can I correct it."

If the trust instrument requires that you, presumably as trustee, distribute all of the income currently, then the trust is entitled to a $300 exemption, regardless of whether the trust distributes additional amounts.

The problem is TurboTax assumes the trust is entitled to a $100 exemption if the trust is a complex trust and a $300 exemption if the trust is a simple trust and that is incorrect. You can, however, change the $100 exemption amount in Forms Mode by simply entering "300" in place of "100" directly on Form 1041 (see screenshot).