Enter income distributions for beneficiaries (1041)

Notes

• When you enter both amounts and percentages for estates and non-grantor trusts, Onvio Tax allocates the amounts first and then the percentages.
• Required amounts and percentages apply to first tier beneficiaries, while discretionary amounts and percentages apply to second tier beneficiaries. For estates and complex trusts, a beneficiary may be both first and second tier.
• Do not use discretionary amount and percentage fields for the following return types: simple trusts, grantor trusts, agency relationships, qualified subchapter S trusts, and charitable remainder trusts.
• Do not use required amount fields for the following return types: grantor trusts, agency relationships, qualified subchapter S trusts, and charitable remainder trusts.
• The setting for the First tier beneficiaries: Allocate all items, except capital gains, equally field on the Allocate screen in the Allocation folder on the Data Entry tab has precedence over required amount and percent fields in the Allocations screen on the Beneficiaries tab.
• Required distributions are based on net accounting income amounts. If there are both required and discretionary distributions, Onvio Tax allocates the required distribution first for all applicable beneficiaries and then any remaining net income using the discretionary allocation information.
• If you enter amounts or percentages in the Special Allocations screen for an income type (for example, interest income), Onvio Tax removes the income type from the allocation using the income distribution amounts or percents. Therefore, you must specify a different allocation for that income type in its entirety for all beneficiaries who should receive distributions of that specific income type.