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Level 2
posted Feb 8, 2020 12:11:49 PM

Are payments out of a college trust to the college for the tuition something I need to report?

I manage my niece's trust, set up by her grandparents to pay for college.  I made the first payment for tuition in 2019.  How do I account for that on the trust's taxes? 

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1 Replies
Expert Alumni
Feb 9, 2020 6:19:49 AM

You report amounts distributed to beneficiaries during the tax year on Line 18 of Form 1041.  See these IRS Instructions for Form 1041, Income Distribution Deduction.  TurboTax Business can prepare a Form 1041.

 

Note also that the education expenses paid by the trust may include qualified education expenses that can be deducted by your niece (or her parents if she is a dependent) on Form 1040.