Solved: We are beneficiaries on an irrevocable q-tip trust and this is the first year we've received income. The K-1 statement we received was for more money that we saw.
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farnzyeav
New Member

We are beneficiaries on an irrevocable q-tip trust and this is the first year we've received income. The K-1 statement we received was for more money that we saw.

As beneficiary of a irrevocable q-tip trust, I understand that I should pay taxes on the money that I receive.  I received a k-1 statement for $5000 more than the money I received.  If the trust kept back some of the income, should the trust pay taxes on that?  Or do I need to even though I never saw the money?

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Accepted Solutions
tagteam
Level 15

We are beneficiaries on an irrevocable q-tip trust and this is the first year we've received income. The K-1 statement we received was for more money that we saw.

" Or do I need to even though I never saw the money?"

You need to contact the trustee in order to get more information. Generally, however, when a trust instrument states that all income must be distributed, then the beneficiaries pay any income tax due on their share of the income whether that income is actually distributed or not.

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1 Reply
tagteam
Level 15

We are beneficiaries on an irrevocable q-tip trust and this is the first year we've received income. The K-1 statement we received was for more money that we saw.

" Or do I need to even though I never saw the money?"

You need to contact the trustee in order to get more information. Generally, however, when a trust instrument states that all income must be distributed, then the beneficiaries pay any income tax due on their share of the income whether that income is actually distributed or not.

View solution in original post

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