My mother passed in 2023 and in 2024 her Trust, with EIN, received 1099s, one of which had tax withholding. I want to help my dad issue a K-1 to himself (sole beneficiary and trustee) so he can report the income on his 1040-SR. He tells me he is responsible for the tax not the trust. K-1s do not have a spot for tax withholdings. Am I stuck needing to file a 1041 and pay the tax due at the Trust level? I doubt enough was withheld. I'm confused and we should probably use a tax expert. I'm a CPA so my dad thinks I know tax! Thanks in advance for any help!
@Amy111 wrote:I'm a CPA so my dad thinks I know tax!
Gee, I've heard this before about other friends and family members:
"You're a CPA so you should know everything there is to know about taxes".
"You're a lawyer so you should be able to defend me on my DUI" (the latest one for me, personally, is a request from a friend, acquaintance actually, to file a step parent adoption and, yeah, free of charge of course because he spoke with an attorney who wanted $6k for that).
Doesn't work that way, we both know.
Seek guidance from a local tax professional (or legal counsel). You need someone who can review the terms of your mother's trust and advise you accordingly.
I am sorry for the loss of your mother.