N-40 Sch. J: Trust Allocation of an Accumulation Distribution (Form N-40) (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Schedule J (Form N-40) reports a trust’s accumulation distribution for 2024 and allocates it to applicable earlier tax years. It also calculates taxes on undistributed net income and reports each beneficiary’s allocation. The schedule is filed with Form N-40.
Who files this form
The 2024 Schedule J is for domestic complex trusts that distributed income accumulated in earlier years. File it with Form N-40 to report and allocate an accumulation distribution.
What you'll need
Have the following information and forms available:
- The trust’s name, federal employer identification number, and tax-year beginning and ending dates.
- Schedule B of Form N-40 for 2024, including lines 9, 11, and 12.
- Records for each applicable throwback year, including accounting income under the governing instrument, distributions, and prior accumulation distributions allocated to those years.
- Form N-40 and Schedules B, D, and G for the applicable throwback years, for the income, tax, capital gain, and tax-exempt interest amounts requested.
- Each beneficiary’s name, identifying number, mailing address, and share of the allocated amounts.
- Form N-405, Tax on Accumulation Distributions of Trusts, which the form says to complete.
How to file
File Schedule J with Form N-40.
Complete Part IV for each beneficiary. If the distribution is allocated to more than one beneficiary, attach an additional Schedule J with Part IV completed for each additional beneficiary. Attach additional schedules if more than five throwback years are involved.
Enter the Part IV totals from line 31 on the appropriate lines of Form N-405.
The provided form does not give a mailing address or e-filing directions.
Common mistakes
- Do not omit additional schedules when more than five throwback years are involved.
- Do not leave out a beneficiary’s allocation. Complete Part IV for each beneficiary and attach an additional Schedule J for each additional beneficiary.
- Do not forget to complete Form N-405, Tax on Accumulation Distributions of Trusts.
- If the trust received an accumulation distribution from another trust, follow the form’s direction to see federal Regulations section 1.665(d)-1A.
Questions people ask
How is the 2024 accumulation distribution calculated?
Part I starts with other amounts paid, credited, or required to be distributed from Schedule B, line 12. Subtract line 4, which is distributable net income from Schedule B, line 9, minus income required to be distributed currently from Schedule B, line 11. If the required current distribution exceeds distributable net income, enter zero on line 4.
Which throwback year receives the allocation first?
Line 13 directs you to allocate the amount on line 5 to the earliest applicable year first, but not more than the amount on line 12 for that year.
What if more than five throwback years are involved?
Attach additional schedules. The form refers to starting with the earliest applicable tax year beginning after 1968.
What if there is more than one beneficiary?
Complete Part IV for each beneficiary. Attach an additional Schedule J with Part IV completed for each additional beneficiary.
Where does the form direct me for more guidance?
It directs you to the federal Instructions for Form 1041, Schedule J, and the Form N-40 Instructions.