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The purpose of Schedule C is to allocate New York fiduciary adjustments (which calculate on Schedule B) to its beneficiaries and the fiduciary of the estate or trust. If you mark the Use special allocations for beneficiary amounts checkbox on the NYGen screen, Onvio Tax does not complete Schedule C; the special allocation calculation does not use the percentage of DNI and state regulations indicate that Schedule C should not calculate in this scenario. Instead, the adjustment amounts will appear on the Schedule K-1 equivalents.

Returns that have multiple trustees should include all executor/trustee information on Schedule C, line F, regardless if it is included on Form IT-205, Page 1.

Column 4

Onvio Tax uses the distributable net income (DNI) percentage to determine the New York fiduciary adjustment for each beneficiary on Form IT-205, Schedule C, column 4. The percentage is calculated by taking the beneficiary's portion of distributable net income divided by the amount on federal Form 1041, Schedule B, line 7. To calculate the beneficiary's portion of distributable net income, add lines 8 and 14b on the beneficiary's federal Schedule K-1.

Differences can occur between the amount calculated on Form IT-205, Schedule C, column 4 and what is entered on the Beneficiaries tab. The differences may be caused by allocating income or expenses to corpus, marking the return as final, or rounding differences.

New York overview (1041)