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Level 3
June 29, 2026
Question

LACERT TAX TRUST RETURN

  • June 29, 2026
  • 3 replies
  • 32 views

I HAVE A NEW CLIENT WHO HAD CA/IL INCOME ON TRUST RETURN AND A K-1 FILTERING TO PERSONAL RETURN. IT IS SAYING THERE IS A TAX DUE ON THE IL RETURN NOT SURE WHY IT ISNT FILTERING TO THE PERSONAL RETURN BUT WHAT IS ODD LAST YEAR IT SHOULD AMOUNT OWED ON RETURN BUT CLIENT LETTER SO NO AMOUNT OWED. WOULD APPRECIATE IT IF ANY OF YOU HAVE ANY EXPERIENCE WITH THIS.

3 replies

sjrcpa
Level 15
June 30, 2026

Not enough info to hazard a guess. IL tax due on the fiduciary return or the individual return? Of what state is the trust resident? And the individual? What type of income is the nonresident state income?

The more I know the more I don’t know.
taxlady6Author
Level 3
July 1, 2026

Yes IL tax due on the fiduciary return. The resident lives in California and trust resident in California with  Illinois return on both returns. The Illinois income is rental income. 

sjrcpa
Level 15
July 2, 2026

I’m still confused. Was trust income distributed to the beneficiary? If yes, dies your 1041 have a distribution deduction?

The more I know the more I don’t know.