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pitbull641
New Member

Paying tax on a trust distribution from an irrevocable trust

my wife is a trustee for an irrevocable trust, her mother is the beneficiary, my wife receives $5,000 annually for work she performs with the trust, do we have to claim this amount, where would it be claimed. we have not received a 1099 or K1
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tagteam
Level 15

Paying tax on a trust distribution from an irrevocable trust

" do we have to claim this amount, where would it be claimed"

Yes, the amount your wife receives as trustee is taxable income so it must be reported. However, it is miscellaneous income that is not subject to self-employment tax. In TurboTax, enter the amount as per the screenshots below.

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1 Reply
tagteam
Level 15

Paying tax on a trust distribution from an irrevocable trust

" do we have to claim this amount, where would it be claimed"

Yes, the amount your wife receives as trustee is taxable income so it must be reported. However, it is miscellaneous income that is not subject to self-employment tax. In TurboTax, enter the amount as per the screenshots below.

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