I am a co trustee on my grandfathers Estate. I get a monthly fee as a trustee. This income is not reported on a K-1 or 1099. Should I report this income?

[emmamydog1]

I am questioning whether a trustees fee is to be reported as taxable income?

[MiriamF · Accepted solution]

Yes, you must report this fee. There is good news and bad news about this income.

The good news is that since you are performing this service as a family member, not a professional, you don't have to pay self-employment tax. The bad news is that you still have to pay income tax.

These fees get reported on Line 21 of your 1040 as "Other income." In TurboTax, you would list them on the Your Income page as "Less Common Income: Other miscellaneous income." See the screenshot below.

The estate is required to issue neither a W-2 nor a 1099-MISC, so you shouldn't expect to get a form.

[bclee]

If the estate/trust is a separate entity, i.e. has its own TIN, a 1099-MISC is theoretically required when the annual amount is >$600  <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1099msc">https://www.irs.gov/instructions/i1099msc</a>  .  
There are penalties if the 1099-MISC is filed late.  The estate/trust may only want to do this going forward from the current year and worry about previous years later.

See also  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4118674-received-1099-misc-for-fiduciary-fees-turbotax-home-busine...>