Thank you Again!!!! I can't tell you how much I appreciate your feedback. Just to be sure I am clear ... So the trust has not earned more than $600 in income since my brother died in Oct 2024. The credit union did issue a 1099 and reported all of the interest under the trust which was erroneous. We have manually prorated that 1099 and allocated the portion to him that he he earned while he was alive on his final personal tax return, and so the remainder of the interest that was earned was earned by the trust but again it less than $600 in total attributable to the trust.
There was a life ins policy and those proceeds have been distributed to his beneficiaries. Again - since the trust has not earned more than $600 in income/interest -- and if I am not required to file a tax return for the trust -does that also mean I dont' have to issue the K form to the beneficiaries?
We are located in AZ- and it is my understanding in AZ that inheritance proceeds such as this are not considered taxable in AZ-- and only the interest the recipients earn on the inheritance after they receive it is taxable.
Thank You Again!!!!!
