14491: 1041 - All Income Being Distributed

There are several entries that may be causing the income to be distributed. First, if this is a simple trust or the final year of the fiduciary return, all income is required to be distributed. If this entity is not a simple trust, return to screen 1 and choose a different Type of entity. If this is not a final return, go to screen 1 and clear the Final return check box:

Simple Trust​

Per the 1041 instructions,

    "A trust may qualify as a simple trust if:

1. The trust instrument requires that all income must be distributed currently..."

If the trust instrument does NOT require that all income be distributed currently, select complex trust on screen 1.

Final Return

Per IRS guidelines, an entity filing form 1041 must distribute all income in the final year. If this is not the final year for the return, clear the Final return check box on screen 1.  

Other Situations 

If the the income is still being distributed, check for the following entries: 

• On screen 1 Name, Address, and General Info:
  • Checked box Distribute all income. If income should not be distributed, remove this check. 
  • Checked box Distribute NET capital gains. If the capital gains should not be distributed, remove this check. 
• ​​Any amount entered on screen 4 Schedules A, B, & G, line 9 Income required to be distributed currently (First Tier). An entry here will force the software to calculate a distribution if there is income on the return.
  

Do not enter a zero on screen 4, line 9 Income required to be distributed currently to prevent an amount from being distributed. This may cause unintentional results on the return.