Skip to main content
Options and overrides
Search
Search Trust Tax (ONESOURCE) Support Help and Support.

This article applies to:

  • Product: ONESOURCE Trust Tax

The Compute-States Category

The options in the
Compute-States
 category (referred to as Compute-States options) control how state taxes are computed. Compute-States options can be set at the SuperBank, PAN, bulk override and account override levels. The Compute-States options include:

All States

Option
Description
Processing of state returns on grantor accounts
This option determines whether state returns are generated when grantor accounts are processed. The selections include:
  • Process all state returns
    -State tax returns are generated for all states, regardless of whether a particular state requires the return to be filed with the state taxing authority.
  • Bypass all state returns
    -State tax returns for all states are not generated.
  • If you want to process state tax returns for grantor accounts, do not select
    Bypass all state returns
    .
  • Bypass state returns for IL, KS, MD, ME, MI, NC, NM, OH, PA, RI and WI
    -State tax returns are generated for all states except for grantor accounts with a resident state of Illinois, Kansas, Michigan, North Carolina, New Mexico, Ohio, Pennsylvania, Rhode Island or Wisconsin.
Send next year's forms (or, if option available, request labels instead of forms) (Applies to: CO, HI, ID, KS, MA, MN, MT, PA, TN)
State returns for Colorado, Hawaii, Idaho, Kansas, Massachusetts, Minnesota, Montana, Pennsylvania and Tennessee include a box to indicate that next year's tax forms or labels should be sent to the fiduciary. When this option is set to
Yes
, a X prints in the box on the state return.
Fiduciary has verified the names, addresses, TINs and bank information (Applies to GA). for 2020 TY and forward
This option must be set to
Yes
 to qualify Georgia returns for e-filing. If the option is set to
No
, Georgia returns will be disqualified and an e-filing diagnostic will generate.
Taxpayer authorizes appropriate taxing authority to discuss return with paid preparer and/or third party designee
State returns include a box to indicate whether a representative from the state taxing authority can discuss the state return with the paid preparer. When this option is set to
Yes
, a X prints in the box on the state return.
Compute credit for taxes paid to other states
When this option is set to
Yes
, a tax credit is computed for taxes paid to other states. Except for California, the tax credit amount is applied to the situs state only.
When computing credit for taxes paid to other states, the following state should receive the credit
Select the state to which you want to apply the tax credit for taxes paid to other states.
Suppress state tax due payment voucher
When this option is set to
Yes
, state balance due payment vouchers are not printed for states that have separate payment vouchers.
Treat income from nonresident state K-1's as nondistributive income
When this option is set to
Yes
, income from nonresident state K-1s are treated as nondistributive income.
Attach nonresident Pennsylvania state return to non-PA situs trusts that have a PA resident beneficiary when not already attached
The following occur during processing when this option is set to
Yes
, the account's situs state is not Pennsylvania, and at least one of the account's beneficiaries is a Pennsylvania resident:
  • Pennsylvania is added to the account binder's States Summary page.
  • The
    Generate a nonresident return using income from PA sources
     check box is selected on the Pennsylvania income tax return page
  • The
    Specify state if nonresident
     drop-down list on the Pennsylvania income tax return page indicates the resident state.
note
If a nonresident Pennsylvania state return is already generated for an account then no changes to the record are automatically made.

Allocation of Fiduciary Adjustment (when distributions are not federally taxable as a result of loss) and state additions exceed such loss

Option
Description
Retain a portion of state taxes (equal to loss) in trust, with remainder of adjustments to be distributed (IL, MI, MN, WI)
When this option is set to
Yes
, the allocation of the fiduciary adjustment on Illinois, Michigan, Minnesota and Wisconsin returns is altered when distributions are not federally taxable because of a loss and when the overall fiduciary adjustment exceeds such loss. The net addition distributed to recipients is limited to the amount the addition exceeds the loss. A portion of state taxes equal to the loss are retained in the trust.

WSC Clients Only

Option
Description
Bypass U.S. Government interest threshold calculations-Always treat USGI as tax-exempt for CA, CT, NJ, and NY
This option applies to only the WSC Plus Package and the WSC Income Reallocation Service.
ONESOURCE Trust Tax defaults to automatically applying USGI threshold determinations. Setting this option to
Yes
 prevents ONESOURCE Trust Tax from considering USGI threshold determinations when USGI is bridged from WSC.
USGI is treated as tax-exempt for California, Connecticut, New York and New Jersey. For any other state, USGI is treated as taxable to the state if the asset does not meet the USGI threshold determinations.

Direct Deposit Instructions

Option
Description
Direct deposit refund to a checking account rather than a savings account
Direct deposit account number
Bank Name (only applies to 990 CT)
Direct deposit routing number
Bank name(s) as it appears on the bank account (Applies to MD)
Financial institution is not located in the United States and accepts International ACH Transactions
These options apply to:
  • Connecticut Form CT-990T.
  • State returns that are e-filed and (when applicable) you want to receive state refunds electronically rather than by a mailed check.
note
If you do not enter bank account information or, if the information is for a foreign bank account, the state taxing authority will mail a check.
Maryland uses the bank named entered in the
Bank name(s) as it appears on the bank account
 option for direct deposit refunds.
Set the
Financial institution is not located in the United States and accepts International ACH Transactions
 option if you will e-file state returns and, when applicable, you want to receive state tax refunds electronically rather than by a mailed check. Select
No
 if the financial institution is located in the United States. Select
Yes
 if you want the state taxing authority to mail the refund check.

Third Party Designee Information

Option
Description
Third Party Designee Name
Third Party Designee Address
Third Party Designee City
Third Party Designee State
Third Party Designee Zip Code
Third Party Designee Taxpayer ID
Third Party Designee Phone number
Third Party Designee Personal Identification Number (PIN)
Third Party Designee E-mail Address
Use these options to enter the name, address, taxpayer ID, phone number, PIN, and e-mail address of the third party designee. Third-party designee information is used for e-filing by the following states:
  • District of Columbia
  • Iowa
  • Maine
  • New York
  • Wisconsin
note
Currently, only Iowa uses the
Third Party Designee Address
,
Third Party Designee City
,
Third Party Designee State
,
Third Party Designee Zip Code
 and
Third Party Taxpayer ID
 fields. An e-filing alert diagnostic is generated on the Diagnostic Report pages of the return if a third party designee name and address is entered buy the designee's taxpayer ID is not entered. The e-filing alert indicates that the third party designee information will be excluded from the Iowa electronic file unless a third party taxpayer ID is entered.

Taxability of Out-of-State Municipal Income (Applies to returns and recipients in IN)

Option
Description
Treat all out-of-state municipal income FACTORED transactions as tax-exempt
This option determines whether out-of-state municipal factored transactions are treated as tax-exempt.
  • Indiana taxes out-of-state exempt (municipal) income for assets purchased after December 31, 2011. Indiana does not tax exempt income from Indiana, Washington D.C. or the U.S. territories.
  • Washington, D.C. taxes all exempt (municipal) income from all states for assets purchased after December 31, 2012.
  • Utah taxes exempt (municipal) income from non-reciprocity states for assets purchased after December 31, 2001. ONESOURCE Trust Tax automatically considers factored exempt (municipal) transactions (other than those from Utah or reciprocity states) as being taxable for Utah purposes.
note
This option has a matching option in the
Enhanced 1099
 category.
Taxability of out-of-state municipal income UNFACTORED transactions
This option determines whether out-of-state municipal unfactored transactions are treated as tax-exempt. For unfactored transactions, the taxability of out-of-state exempt income is determined as follows:
  • If the asset has an issue date after December 31, 2011, then the transaction is taxable for Indiana purposes.
  • If the asset does not have an issue date after December 31, 2011, then taxability for purposes of the state tax return is determined based on the selection for this option. For 1099 processing, see the matching option in the
    Enhanced 1099
     category.
  • If the asset has a federal acquired date and this option is set to use the federal acquisition date to determine taxability, then the federal acquired date is used to determine taxability.
Washington, D.C. taxes all exempt (municipal) income from all states for assets purchased after December 31, 2012.
Unfactored exempt (municipal) transactions other than those from Utah or reciprocity states are automatically considered taxable unless the transaction acquisition date entered is on or before December 31, 2001.

Treat 'Trustee fees subject to the 2% floor' transactions as deductible for the following states unless account is marked as Agent for Trustee

Option
Description
Massachusetts-Treat 2% Trustee fees as deductible
This option does not apply to agent for trustee accounts.
When this option is set to
Yes
, unbundled trustee fees (transactions in tax codes 522 through 525) are treated as deductible for Massachusetts purposes. If
No
 (the default) is selected, transactions from these tax codes are treated similar to other tax codes already available for deductions subject to the 2% AGI floor.
New Jersey-Treat 2% Trustee fees as deductible
This option does not apply to agent for trustee accounts.
When this option is set to
Yes
, unbundled trustee fees (transactions in tax codes 522 through 525) are treated as deductible for New Jersey purposes. If
No
 (the default) is selected, transactions from these tax codes are treated similar to other tax codes already available for deductions subject to the 2% AGI floor.

Alabama

Option
Description
Do not automatically correct rounding differences between AL Schedule D and Federal Schedule D
This option determines whether rounding differences between Alabama's Schedule D and the federal Schedule D are corrected.
Select
Yes
 to correct the rounding differences. Select
No
 to report amounts on Alabama's Schedule D without correcting any rounding differences.

Arizona

Option
Description
Fiduciary Adjustment Allocation
This option determines how the fiduciary adjustment is allocated on Arizona state tax returns. The default for this option is Consider state taxability of distribution in determining fiduciary adjustment.

California

Option
Description
Do not report capital gains on Form 541 if none of the co-trustees are from California (Does not apply to final year returns or estates)
This option does not apply to final accounts or estates.
Capital gains are excluded from California's Form 541 when this option is set to
Yes
 and none of the co-trustees are from California.
Do not print Schedule K-1 with Form 541-A
This option determines whether Schedule K-1 is printed with California's Form 541-A.

Illinois

Option
Description
Reporting of U.S. Government interest (Also applies to IL Schedule 1299-B dividend subtraction adjustments)
This option determines how the adjustment for USGI is computed on an Illinois state tax return, and whether gross or net dividend income is used in the Schedule 1299-B dividend subtraction calculation.
Method of Distributing Income and Replacement Tax
This option determines how the replacement tax is allocated on the Illinois state tax return. When this option is set to
Allocate between trust/estate & beneficiaries based on distribution of income
, the replacement tax is allocated between the trust and the recipients based on the distribution of income.
Suppress IL-1041 when processing 5227
This option applies to split-interest trusts. It determines whether Illinois Form IL-1041 is suppressed or printed when 5227 tax returns are processed. The default selection is
No
.
When this option is set to
No
, Illinois Form IL-1041 is printed. When this option is set to
Yes
, Illinois Form IL-1041 is suppressed.

Indiana

Option
Description
Personal Representative Name
Personal Representative Phone number (enter as XXX-XXX-XXXX)
Personal Representative Street
Personal Representative City
Personal Representative State
Personal Representative Zip Code
Enter the name, address and telephone number of the personal representative. This information prints on your Indiana state tax returns.
Offset the same amount of expenses against U.S. Government Interest as on the federal return
When this option is set to
Yes
, the federal tax return and the Indiana state tax return report the same amount of expenses offset against USGI.

Iowa

Option
Description
Treat state taxes deducted on federal Form 1041 as a state addition for Iowa resident returns (Option applicable for 2022 tax year only)
This option is applicable for tax year 2022 only.
The values for this option are
No
 (the default) and
Yes
.
The system default is to follow Form IA 1041 and its instructions when there is no mention of an addback for state taxes. When this option is set to
Yes
, the Iowa state tax allowed for federal purposes is included as an other addition on Form IA 1041, Schedule A, Part I, line 4. The following excerpt is from correspondence from the state regarding whether Iowa state taxes should be included as an addition on Schedule A:
"Any additions to Iowa income that are not a specific line item should be included on line 4 of Part I of the Schedule A. Any subtractions that are not a specific line item should be reported on line 6 of Part II of the Schedule A. Additional review of forms/instructions to determine if additional lines need to be added to the whole form during the forms review period."
Treatment of Allocable expenses (Option not applicable beginning with 2022 tax year)
This option is not applicable beginning with tax year 2022.
This option determines the portion of allocable expenses that are treated as deductible expenses against Iowa taxable income. When
Allocable expenses allocated to IA gross taxable income in the same amounts as for the federal return
 (the default) is selected, any expenses subject to the 2% AGI limit for federal tax purposes are automatically included on line 16 of Form IA 1041.

Maryland

Option
Description
Do not allocate expenses against U.S. Government interest
Setting this option to
Yes
 reports the USGI subtraction at gross (no expenses offset) on Maryland state tax returns.
Fiduciary Adjustment Allocation
This option determines how the fiduciary adjustment is allocated on Maryland state tax returns. The default value is
Consider state taxability of distribution in determining fiduciary adjustment

Massachusetts

Option
Description
Present difference between federal and state gains on MA Sched. D
When this option is set to
Yes
, the difference for each type of federal and state capital gain is shown on Massachusetts Schedule D.
Include U.S. Government Interest in Other Interest on Form 2G-Grantor trusts
Setting this option to
Yes
 includes USGI in the other interest amount reported on Massachusetts Form 2G.
Only include short-term capital gain dividends (tax code 126) coded as principal in calculating nondistributive income
When this option is set to
Yes
, short-term capital gain dividends posted to tax code 126 are included as principal when nondistributive income is calculated.
Name of designated tax matters partner
Identifying number of tax matters partner
For accounts that hold partnership pass-thru entities, enter the name and identifying number of the Tax Matters Partner.
Use TAI to determine distributions reported (option applicable beginning with tax year 2019)
This option applies beginning with tax year 2019.
When this option is set to
Yes
, Massachusetts income reported to beneficiaries is limited to distributions rather than gross income.
Do not consider IRC 663(b) distributions made within 65 days of the close of the prior taxable year (option applicable beginning in tax year 2021)
This option applies beginning with tax year 2021.
When this option is set to
Yes
, IRC 663(b) distributions made within 65 days after the close of the prior tax year are not reported on the Massachusetts return as distributions.
When this option is set to
No
 (the default), IRC 663(b) distributions made within 65 days after the close of the prior tax year are reported on the Massachusetts return as distributions.

Minnesota

Option
Description
Minnesota Trustee ID
Enter the seven-digit trustee ID assigned to you by the state of Minnesota. Your fiduciary EIN prints on Minnesota Form M-2 if you do not enter a trustee ID.

New Hampshire

Option
Description
Computation of beneficiary message for non New Hampshire situs, non-final, simple/complex trusts
For simple and complex trusts, this option determines how the beneficiary message is computed when the trust is not a final account and the trust has New Hampshire income but a different situs state.
Treat short-term capital gain dividends as non-taxable income
This option determines whether short-term capital gain dividends are treated as nontaxable income on the New Hampshire state tax return.

New Jersey

Option
Description
Do not limit income commissions to 6% of income
When this option is set to
Yes
, the income commission reported on line 17 of Form NJ-1041 is not limited to 6% of income.
Use DNI, not TAI, to determine distributions reported-Simple/Complex $300 trusts
When this option is set to
Yes
, DNI is used to determine the distributions reported on Form NJ-1041 for simple and complex $300 trusts.

New York

Option
Description
Fiduciary Adjustment Allocation
This option determines how the fiduciary adjustment is allocated on New York state tax returns. The default value is
Consider state taxability of distribution in determining fiduciary adjustment
.
Tax Preparer Registration Number (NYTPRIN)
Tax Preparer Registration Number Exemption Code (NYTPRIN)
If you are required to have a New York tax preparer registration identification number (NYTPRIN), enter it in the
Tax Preparer Registration Number
 option. If you are exempt from the registration requirement, enter the 2-digit NYTPRIN exclusion code in the
Tax Preparer Registration Number Exemption Code
 option.

North Carolina

Option
Description
Split nonresident beneficiary income deduction equally among beneficiaries for complex trusts and estates
When this option is set to
Yes
, the nonresident beneficiary income deduction reported on line 6 of North Carolina Form D-407 is split equally among the beneficiaries for estates and trusts.
When this option is set to
No
, the nonresident beneficiary income deduction is split based on the distribution of DNI.

Oklahoma

Option
Description
Generate report of Nonresident Member Income Tax Withheld on grantor accounts
When this option is set to
Yes
, Oklahoma Form 500-B (Report of Nonresident Member Income Tax Withheld) is generated for grantor accounts with a situs state of Oklahoma that make distributions to nonresident recipients.

Oregon

Option
Description
Do not print Oregon CT-12S
When this option is set to
Yes
, Oregon Form CT-12S is not generated.
Preparer License Number
Enter your preparer license number issued by the Oregon Board of Tax Practitioners.

Pennsylvania

Option
Description
Method for computing PA-41, Schedule DD for 5227 returns
This option determines whether undistributed income is treated as a charitable deduction on Pennsylvania Form PA-41, Schedule DD.
Compute distribution deduction based on gross income
For accounts with a situs state of Pennsylvania, this option determines whether distribution deductions are computed based on gross or net income.
Selecting
Yes
 computes distribution deductions based on gross income. Selecting
No
 computes distribution deductions based on net income.
Do not adjust lines 9 and 10 of REV-1630F to compensate for prior period underpayments
When this option is set to
Yes
, lines 9 and 10 on Pennsylvania Form REV-1630F are not adjusted to compensate for any prior period underpayments.
Adjust Pennsylvania income on the PA-41 Schedule A for amortization of bond premium
When this option is set to
Yes
, an adjustment for amortization of bond premium is made on PA-41 Schedule A.
Retain principal dividends in the trust
Set this option to
Yes
 to retain principal dividends in the trust.

Rhode Island

Option
Description
Compute additions and subtractions at gross-no expense allocation
When this option is set to
Yes
, additions and subtractions are not offset against expenses for Rhode Island income tax reporting purposes.
Compute Schedule II using Federal Taxable Income. If unchecked, compute using federal DNI
When this option is set to
Yes
, Form RI-1041 Schedule II (Allocation and Modification) is computed using federal taxable income. When this option is set to
No
, Form RI-1041 Schedule II is computed using federal DNI.

Tennessee

Option
Description
Computation of beneficiary message for non Tennessee situs, non-final, simple/complex trusts
For simple and complex trusts, this option determines how the beneficiary message is computed when the trust is not a final account and the trust has New Hampshire income but a different situs state.

States Adopting UPIA (Uniform Principal and Income Act)

Option
Description
All options under the
States Adopting UPIA (Uniform Principal and Income Act)
 section
The options under this section apply to states that adopted the Uniform Principal and Income Act (UPIA) of 1997.
When a state is set to
Yes
 and an account's situs state is the same state, then short-term capital gain dividends (tax code 126) are included in TAI regardless of whether short-term capital gain dividends are posted to income or principal.