your dates are kinda confusing me. appears the trust distributed the assets to three people in March, 2020 and you are trying to complete the Trust's 2020 tax return, is that right.
1) fill out the 1041 form
2) fill out the associated K-1's for the beneficiaries - yes, there are three beneficiaries
The Trust doesn't pay taxes;
those K-1's will transfer any income and expense to the three beneficiaries and they will post them on THEIR tax returns. Any impact of income or expense and therefore the resulting tax will be felt on THEIR tax return.
the term 'trust money' and 'beneficiary money' is really one in the same once the K-1's are distributed. Why are you trying to make the differentiation? that may be hanging you up?????
Doesn't the cash being distributed reflect the income, net of expense on the K-1?
these Trust 1041's can be confusing if you are doing for the 1st time and only 1 time, it may be worth spending the money on an accountant
