interest earned in a trust

2 replies
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Is $200 interest earned in a irrevocable trust at final distribution taxable

NCperson

Level 15

Yes

KarenL

Employee Tax Expert

Yes, the beneficiaries would receive a Schedule K-1 from the Trust's tax return (Form 1040) and report their K-1 on their own Individual Income Tax Return (Form 1040) for their share of the interest and other income of the Trust.

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interest earned in a trust

2 replies

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