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New Member
posted Apr 6, 2024 9:54:03 PM

How do I enter a trust distribution payment?

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1 Replies
Expert Alumni
Apr 11, 2024 5:01:33 PM

It depends on the trust distribution. If this is a distribution of the trust principal balances, this does not need to be reported as income because the IRS assumed this money was already taxed. If there were interest or capital gains in addition to these bank balances, then the money is taxed.

 

Usually if this is the case, the trust should issue a k-1 to you to report on your own individual tax return.