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Level 2
posted Mar 31, 2023 12:58:35 PM

Where do I declare income from my irrevocable trust? (I am not asking about the trust's tax return which was handled by which was handled by an accountant.)

My mother created an irrevocable trust in my name and I've been taking monthly disbursements. How do I declare these on my income tax return?

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5 Replies
Level 15
Mar 31, 2023 1:00:37 PM

You should have received a Schedule K-1 to be reported on your tax return.  Did you receive a Schedule K-1?  If not ask the CPA who handled the trust tax return for the Schedule K-1.

Level 2
Mar 31, 2023 1:20:16 PM

I have not received a schedule K-1 the accountant tells me before we are filing a grantor letter and not a 1041.

Level 15
Mar 31, 2023 1:22:39 PM


@atoasttoall wrote:

I have not received a schedule K-1 the accountant tells me before we are filing a grantor letter and not a 1041.


See this answer for a Grantor Letter - https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/grantor-letter/01/2805294

Level 2
Mar 31, 2023 2:29:56 PM

Does TurboTax have a button where I enter my disbursements (no W-2 or equivalent)? Aren't those still taxable income?

Level 15
Apr 1, 2023 12:52:12 AM

when you get a grantor letter it's like the trust never existed. you report on the appropriate form based on what it is. for example interest income. if earned from three sources you are supposed to enter 3 1099-Int. if dividends are from 2 stocks you're supposed to use 2 1099-DIV. each stock transaction listed would need to be listed separately