Qualified dividends allocation in Turbo Tax Business

Forum|Forum|2 years ago
February 20, 2024
2 replies
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I am filing a business return for a simple trust using TurboTax Business, and want to allocate all qualified dividends to the trust. However, TT Business thinks I want to distribute the dividends to a beneficiary when I have not specified any beneficiaries in the return, and it will not let me file the return. I think I just need to find a way to tell TT Business that I have no beneficiaries and want all income generated by the trust to go to the trust, but I don't see a way to do it.

TurboTax Business Windows

Mike9241

you can't do what you want if it is truly a simple trust. By definition and law, a simple trust is required to distribute all ordinary income to the beneficiaries annually. what does the trust document say about income distributions? does it use the word "shall" or "may"? "shall" indicates a requirement. "may" means income distributions are at the discretion of the trustee. Such a trust would be a complex trust even if the trustee distributed all the income. also any distributions of corpus make the trust complex even simple trusts in their final year because of the distribution of corpus. .

Anonymous_

Employee

In addition to what @Mike9241 wrote, you cannot separate ordinary (nonqualified) divdends from qualified dividends as the latter are merely a subset of the former.