topic Last year my husband received a distribution from his late mother's trust to purchase a vehicle. How do I claim this on our taxes? in Retirement tax questions

Last year my husband received a distribution from his late mother's trust to purchase a vehicle. How do I claim this on our taxes?

cjlmhughes — Wed, 10 Mar 2021 01:53:44 GMT

We have yet to receive any tax documents. His uncle is the trustee.

Re: Last year my husband received a distribution from his late mother's trust to purchase a vehicle. How do I claim this on our taxes?

Anonymous_ — Wed, 10 Mar 2021 02:14:26 GMT

"How do I claim this on our taxes?"

You may not have to report the distribution if the distribution was from the corpus (principal) of the trust.

Contact the trustee and inquire. Reportable income and gain from distributions you receive should be reported to you on a K-1 (1041).

Re: Last year my husband received a distribution from his late mother's trust to purchase a vehic...

MaryK4 — Wed, 10 Mar 2021 02:14:46 GMT

You will receive a K-1 (For calendar year trusts, the due date is April 15). You can always check your trust documents and/or ask the trustee if you will owe taxes. It depends on the terms of the trust, but in most cases the trust pays the taxes before the disbursement so you do not have to pay additional taxes.