topic Trust K1 including final distribution in Get your taxes done using TurboTax

Trust K1 including final distribution

lilly54 — Tue, 24 Feb 2026 05:02:35 GMT

Our father had a revocable trust. When he passed away his revocable trust became an irrevocable trust. I am both the Trustee and the sole heir.

The trust is at an end and I have put the final distribution to me on TurboTax Business. When I look at the K-1, it doesn't include this distribution (only the interest which the trust made last year in box 1).

I answered yes to "Did the Trust make any distributions to its beneficiaries in 2022. It's already set up as 100% distribution from prior years. I added the additional distribution which represents the final assets distributed under Trust Accounting Income. I said yes, that the entire income was distributed (it was).

Is this correct? Doesn't the heir (me) need to pay taxes on that distribution and wouldn't that be from

the K-1? Did I enter it incorrectly?

Re: Trust K1 including final distribution

Anonymous_ — Fri, 14 Apr 2023 18:59:41 GMT

Your K-1 is only going to show items of income, gain, deductions, and credits.

Distributions of trust corpus will not appear on your K-1.

Re: Trust K1 including final distribution

lilly54 — Fri, 14 Apr 2023 19:06:41 GMT

Isn't the final distribution of assets (in this case the monies left) income? Don't I need to pay taxes on the distributed income on my personal taxes? If it's not on the K-1 where do I then enter it on my personal taxes (also in TurboTax --a different version)?

Re: Trust K1 including final distribution

Anonymous_ — Fri, 14 Apr 2023 19:24:55 GMT

@lilly54 wrote:

Isn't the final distribution of assets (in this case the monies left) income?

No, corpus, or the principal of the trust, is not income (as opposed to taxable interest, dividends, and the like that is earned from the principal).

Re: Trust K1 including final distribution

lilly54 — Fri, 14 Apr 2023 20:20:38 GMT

Wonderful. That's a nice little bonus from my Dad (albeit, I would have preferred him alive). Thank you!

Re: Trust K1 including final distribution

Anonymous_ — Fri, 14 Apr 2023 20:21:23 GMT

Yes. My condolences on your loss.