DW3
Level 1
09-16-2020
01:37 PM
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Why doesn't the 1041 program consider the tax benefit rule for state tax refunds? If a trust was limited to a $10,000 state tax deduction in 2018, why should it then report the refund as income in 2019?
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Accountant-Man
Level 12
09-16-2020
03:39 PM
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It shouldn't, but it is not programmed like the 1040.
Do it manually; enter the refund as income, then back it out "As per Rev. Rul. 79-15, no tax benefit."
You can see I'm old since I have been doing this since 1982, and I still remember RR 79-15.
** I'm still a champion... of the world! Even without The Lounge.
DW3
Level 1
09-16-2020
06:21 PM
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Thank you for responding!
Accountant-Man
Level 12
09-17-2020
02:09 PM
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YW, and thank you for thanking me.
** I'm still a champion... of the world! Even without The Lounge.