I am filling out a trust return for the first time since my appointment as the trustee for a third party supplemental needs trust in February 2019. I received two 1099 div/interest forms which I entered - included dividends paid to trust and capital gains information only. I assume all of this is considered "income" for the trust? Separately the software asked about distributions and whether the entire Income was spent on the distributions. More funds were spent on the supplemental needs that what the system recorded as income. Do I just say 100% of income provided to beneficiary? I assume when I pay for needs, such as insurance, and not pay her directly, this is included as income? Sorry, very new to this.
