ThomasM125
Employee Tax Expert

Get your taxes done using TurboTax

Tier one is income that must be distributed, based on the stipulations in the trust or governmental requirements. Tier two is all other income of the trust. So, you would have to determine if the capital gain income and the other income you mention is required to be distributed in the current year. If so, it would be tier one.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"