Husband & his Brother are the co-Trustees of their parents' LIVING TRUST who passed in 2023. All distributions have been made to relatives. (House was SOLD, CD's and Bank accounts closed, etc). Total estate was around $1.6 Million. They plan to file a form 1041 for the Distributions.
- Do we have to file anything specific for the INCOME with the FED on our taxes? Can't seem to find any specific form in TTAX.
- Do they have to send any specific form to the siblings who had $$ distributed to them ?
Thanks in advance.
You really do need to contact the trustees for further information.
You might receive a K-1 with your share of the income, gain, deductions, credits, et al., or you might receive a distribution that is tax-free if the trustees paid any and all taxes due from the trust itself.
If you receive a K-1 (1041), you would simply enter the information from that tax reporting form into your own individual income tax return (1040).
OK, I guess I wasn't clear :
- He *IS* the Trustee of the estate. (he and his brother both are) We printed out a 1041 form the IRS site last night (TTax Home Business doesn't seem to have this form? ) So he Must file a 1041 to the FED, right? They distributed funds to siblings from the proceeds of the house sell & closing of all accounts.
- Do we/he need to Send a form of some sort to the recipients/siblings of the funds they distributed? Which Form ? Again, TTAX doesn't seem to have anything in software that specifies this.
- Lastly, he & his brother (Trustees) ALSO received money from the estate. Do they both have to submit a form to the IRS for inheritance RECEIVED? Nothing in TTAX points us to this or any specific form.
You need Turbo Tax Business.
The small business program (TT Business) is for 1120 Corporation, 1120S Corp, 1065 Partnership or 1041 Estate/Trust returns and will not do your personal 1040 return. It is a separate program from the Desktop Home & Business program or the Online Self Employed version.
If you need to file the 1041 Estate/Trust return you need Turbo Tax Business. And it will create the K-1 forms to give to the beneficiaries.
Turbo Tax Business is not available to do online or on a Mac. And you can have both TT Business and TT Home & Business (or any personal version) installed on your computer at the same time.
You can buy the Window's Business Desktop program here…..
https://turbotax.intuit.com/small-business-taxes/cd-download/
Here are the system requirements to install Turbo Tax for Windows…..