Beneficiary of trust that pays the income tax, do I need to record it?

emily21 — Sat, 01 Jun 2019 06:46:11 GMT

Since I am a beneficiary of a trust and have not received any payouts and the fund pays the income tax, do I need to report this on my tax return with a K-1?

If the trust is paying all income taxes with it's 1041, y...

AmyT — Sat, 01 Jun 2019 06:46:11 GMT

If the trust is paying all income taxes with it's 1041, you will most likely not have any income to report.

Before you finalize your return, it would be a good idea to contact the trustee to make sure that you will not receive a K-1 that shows income or deductions that you would be required to report. While, in this situation it is unlikely that you will, it would be better to be positive before filing than to need to file an amended return later.

topic Beneficiary of trust that pays the income tax, do I need to record it? in Business & farm

Beneficiary of trust that pays the income tax, do I need to record it?

If the trust is paying all income taxes with it's 1041, y...