interest earned in a trust

[ccatanzaro]

Is $200 interest earned in a irrevocable trust at final distribution taxable

[NCperson]

Yes

[KarenL]

Yes, the beneficiaries would receive a Schedule K-1 from the Trust's tax return (Form 1040) and report their K-1 on their  own Individual Income Tax Return (Form 1040) for their share of the interest and other income of the Trust.