topic trust in Deductions & credits

trust

joe5050 — Tue, 24 Feb 2026 05:39:56 GMT

how do you determine if a distribution from a trust is tier 1 or tier 2. The trust in question is a complex trust that does not require yearly distributions.

thank you.

Re: trust

Anonymous_ — Sun, 09 Apr 2023 15:25:51 GMT

Tier 2 distributions would be all amounts paid to beneficiaries other than Tier 1 distributions.

Tier 1 distributions are mandatory (they are required to be paid) and not discretionary.

Ref Section 662(a)(1)

Re: trust

Anonymous_ — Sun, 09 Apr 2023 15:27:12 GMT

If no distributions are required, then any that are actually made would generally be Tier 2.