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Old 03-01-2014, 06:30 PM
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1041 Tax Withholding error

I mistakenly had Federal and state taxes withheld from a fiduciary trust distribution, which withholding was credited to the account of the trust and not my SSN. The trust owes no tax because all income is distributed. If the withheld taxes are shown on 1041 line 24e as income tax withheld, it creates an overpayment and refund in the amount of the withheld tax. The mistake made is the refund will be made out to the Trust, which I believe can only be deposited into the trust account. The only way to get the withheld tax back is to make another distribution, which will be recorded as a taxable distribution on next year's K-1. Can this be right?

Is there any way to either have the withheld amount credited to my SSN or have the refund made out to me personally? My hope is to avoid paying tax on getting the withheld taxes back.

Thanks



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