In preparing a 1041, the adjusted total income of $141 went to the surviving spouse. Since it's under $600, do we have to show a distribution deduction and create a K-1 for the spouse?

ANSWER

The BIDaWIZ Team's Answer:

Did the entire estate have an annual gross income below $600? If so, you don't need to worry about Form 1041 at all. If on the other hand the estate has an annual adjusted gross income of $600 or more and the trustee is required to distribute the income to the beneficiary and report the distribution deduction, schedule b of form 1041 must be completed and a subsequent k-1 form must be filed.