Form 1041 - Beneficiary's Portion of Total Distributions

If Schedule K-1 (Form 1041) Beneficiary’s Share of Income, Deductions, Credits, etc. is blank on Form 1041 U.S. Income Tax Return for Estates and Trusts, you may need to complete the distributions section of the Q&A.

For Schedule B within Form 1041, Lines 9 through 11, TaxAct calculates these items by totaling the distribution information entered for each beneficiary on the Schedules K-1 (Form 1041). You must enter the amount of total distributions and income required to be distributed for each beneficiary. TaxAct calculates other amounts required to be distributed by subtracting the required distributions from the total distributions.

TaxAct uses each beneficiary's portion of total distributions to help allocate income, deductions, and credits to Schedule K-1.

To enter distribution information into TaxAct for each beneficiary:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Distributions to Beneficiaries in the Federal Quick Q&A Topics menu to expand, then click Distributions.
  3. Continue with the interview process to enter all of the appropriate information.

Per IRS Instructions for Form 1041 and Schedules A, B, G, J, and K-1, on page 29:

Line 9—Income Required To Be Distributed Currently

Line 9 is to be completed by all simple trusts as well as complex trusts and decedent's estates that are required to distribute income currently, whether it is distributed or not. The determination of whether trust income is required to be distributed currently depends on the terms of the governing instrument and the applicable local law.

The line 9 distributions are referred to as first tier distributions and are deductible by the estate or trust to the extent of the DNI. The beneficiary includes such amounts in his or her income to the extent of his or her proportionate share of the DNI.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.