1041 Trust Tax Return K-1 Distribution

Either the Trust pays all the tax or it is divided among the beneficiaries according to each

one's percentage of the total. If the Fiduciary is paid, that is a deduction for the Trust and

W-2 income for the Fiduciary.

There should be no indication that anything is being switched around to avoid taxes.

You can't "change the distribution" on the 1041 any more than you can change, for instance, guaranteed payments on a 1065. They were what they were, and aren't subject to after-the-fact manipulation unless they were incorrectly recorded in the first place.

Nice try, but Archie is right.

This is a simple trust with the K-1 going to the surviving spouse. However the surviving spouse also died. My understanding is that until the trust is closed after the surviving spouse dies the income is taxable to the trust.

Therefore income goes to the surviving spouse through the date of death, afterwards the income is taxable to the trust.

That is why I would lke to know how do I change the distribution so that only part of the income flows to the K-1 and the rest of the income is taxed to the trust?

All of these marital trusts that I've ever seen terminate at the death of the beneficiary. Is that not the case here? If so, then the post-death income goes to the estate. If not, is there a successor beneficiary?

I forgot to mention....even if the trust survives, it's now a complex trust by definition, so that should solve your distribution problems.

Without creating a practice return to check, that sounds right. Then you'll have Estate 1041 covering the rest of the time the estate is open.