A fiduciary tax return was not filed before the due date and will be filed soon (hopefully before the end of the year).
An advanced payment was made in September by using Form 1041-V.
Should this payment be claimed in the 2021 tax return?
My thinking is a 'nope'. The reason is that this payment was made with Form 1041-V. So it was a payment for the tax return balance due. It is no different from a payment made after a balance due is shown in a tax return as in usual situations. The only difference is that this payment was paid much earlier than the tax return is filed. Therefore, in my opinion, this payment should not be claimed in the tax return. The tax return would still show the balance due. And the IRS will use this payment (which should be shown as a credit in the account now) to offset the balance due.
Does anyone agree or disagree?
