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.
Does the IRS require similar withholding of income when a trust makes distributions to US citizens?
Generally, there is no federal withholding requirement when distributions are made to the beneficiaries of a trust. Some states have that provision to ensure out of state benes pay any state income tax that may be due.
Does the IRS require similar withholding of income when a trust makes distributions to US citizens?
Generally, there is no federal withholding requirement when distributions are made to the beneficiaries of a trust. Some states have that provision to ensure out of state benes pay any state income tax that may be due.