Allocating estimated payments to beneficiaries (1041)

Alerts and notices

A trust (or a decedent's estate in its final year) may be able to allocate all or part of its estimated tax payments to its beneficiaries.

Notes

  • Only CA, HI, NY, and SC support allocation of state estimated payments to beneficiaries.
  • Only estimated tax payments paid as of the fourth estimated due date (January 15th payment for calendar year ends) are available for allocation.
  • For grantor trusts, the Screen PayExt Allocate payments to beneficiaries: Allocate 100% field is marked automatically.

To allocate estimated tax payments to beneficiaries equally, complete the following steps.

  1. Open Screen PayExt (federal) or StPmt (state) in the federal Payments folder.
  2. Enter the estimated payments.
  3. For state estimates, enter or verify the state postal code.
  4. Mark the Allocate payments to beneficiaries: Allocate 100% box to allocate all estimated payments paid as of the fourth payment due date. To allocate a portion of the payments to beneficiaries, enter a dollar amount in the Allocate payments to beneficiaries: Amount to allocate, if not 100% field.

To allocate estimated tax payments to specific beneficiaries using different percentages, complete the following steps.

  1. Choose View > Beneficiary Information.
  2. Click the appropriate beneficiary.
  3. Click the Federal tab.
  4. Enter a percentage in the Estimated taxes field in the Other Allocations group box. (This percentage is applicable to both the federal and state returns.)

Share This