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How does a trust pay it's taxes?
This is the first year for my child's complex, irrevocable trust and I have filled out a 1041. Because I didn't understand that trusts are taxed at a higher rate, I did not make any distributions. Therefore, the trust owes taxes. I want to pay the tax bill from the trust and also reimburse myself for the cost of Turbo Business. Does the trust make a check to the IRS and to me for my cost? Or does a check go to my child who then makes the payments? How is that handled next year when I'm asked to enter distributions from the trust? It doesn't seem like it should go on their K-1 as they didn't get to keep the funds.
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‎June 4, 2019
1:36 PM