M-MTax
Level 15

Business & farm


@XAM330 wrote:

I am thinking I should tell them not to give it to me until next year.


That might actually be a useless request and you should speak with the attorney with respect to the timing of the payment.

 

The reason being is some estates/trusts are required to distribute certain amounts to beneficiaries and, if that's the case here, you will receive a K-1 with a figure reportable on your 2025 return whether the $33,000 is distributed to you in 2025 or not.

 

Ref: Section 662 - https://www.law.cornell.edu/uscode/text/26/662

 

In short, if the estate is required to distribute the $33,000 currently, you'll need to report it on your 2025 return even if you delay payment until 2026.