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Does a trust have to pay Federal withholding tax when it pays distribution to beneficiaries?
The trust is in Kansas, and Kansas requires 2.5% of distributable income to be withheld from receiving beneficiaries for income tax purposes. Does the IRS require similar withholding of income when a trust makes distributions to US citizens? I've searched the internet and found that only distributions to foreigners must have income withheld for tax purposes. Thanks.
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‎June 4, 2024
6:25 PM