Thanks for the quick reply, duh, I misread, you clearly responded form 1041. Looking at this form, I assume distribution of principal qualifies as "other amounts". So does the beneficiary report anything? One other question that I believe is obvious but will ask anyway, if current year income is distributed and a K1 is issued for that amount, does the money actually have to be paid/transferred to the beneficiary or can the beneficiary elect to leave it in the trust, even though they are responsible for paying the tax? Many thanks.
