Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Help articles

Taxable income on California trust or estate return

The estate or trust uses Schedule K-1 (541) to report your share of the estate's or trust's income, deductions, and credits.
  • Estate - based on residency entered on the federal 1041 screen.
  • Trust - based on resident and nonresident fiduciaries entered in the statement window on the federal 1041 screen (you can force on the state screen).
If return is for a resident estate:
On Form 541, Page 1 all income is taxable.
  • Schedule K-1, Column (d) = share of all income
  • Schedule K-1, Column (e) = share of California source income
If return is for a nonresident estate:
On Form 541, Page 1, only California source income is taxable.
  • Schedule K-1, Column (d) = share of California source income
  • Schedule K-1, Column (e) = share of California source income
If return is for a trust and all fiduciaries are residents:
On Form 541, Page 1 all income is taxable and UltraTax CS doesn’t complete Schedule G, Part II.
  • Schedule K-1, Column (d) = share of all income
  • Schedule K-1, Column (e) = share of California source income
If return is for a trust and any fiduciary is a nonresident:
On Form 541, Page 1, Income is taxable and expenses deductible based on Schedule G Part II (Form 541, Page 3).
  • Schedule K-1, Column (d) = share of total income. Prior to 2015, UltraTax CS uses apportioned income for this to make column (d) match Schedule B. For tax years 2015 and beyond, the K-1s don't have to tie to Schedule B in this situation.
  • Schedule K-1, Column (e) = share of California source income.
How to make income taxable on the California return:
For Schedule G to calculate properly, mark all income that's taxable to California as taxable to CA. If the non-CA source amounts are not in column (b), the expense ratios won’t calculate properly.
If there is data in the allocation grid for a K1 or K1T activity, you need to fill out the CA Total Source column (often, but not always, 100% of federal).
Prior to 2015, if CA was not the
State of residency
 on the federal 1041 screen, you needed to enter
CA
 in the Postal code column for all interest and dividends. Starting in UltraTax CS 2015, use federal numbers for total source interest and dividends.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close