1041 Trust K-1 Retirement income Distribution

[16nadine]

Is Trust 1041 K-1 retirement income distribution to a minor under age 18 treated as unearned income on Federal 1040 and taxed at Trust/estate rate on federal form 8615?

[tagteam]

When current income is distributed to a beneficiary from a trust, the trust receives an income distribution deduction for the amount distributed. Therefore, the trust is not taxed on the income distributed (or deemed distributed).

The beneficiary who receives the distribution is taxed at the beneficiary's applicable income tax rate (on the amount of the distribution) and, in this instance the amount is unearned income.

[phd2341]

hi, where do i put the income form a trust on my 1040

[tagteam]

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@phd2341 wrote:

hi, where do i put the income form a trust on my 1040

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Did you receive a K-1 or do you have a grantor trust (aka revocable living trust)?

[DoninGA]

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@phd2341 wrote:

hi, where do i put the income form a trust on my 1040

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To enter a Schedule K-1

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Business Items (Business Investment and Estate/Trust Income using Home and Business)
• On Schedule K-1, click on the start or update button

Or enter k-1 in the Search box located in the upper right of the program screen. Click on Jump to k-1