Revocable Living Trust and Residual Checks

[EGreene21]

My husband receives residual checks from acting, which we file on our taxes. We are considering putting those in the name of our revocable living trust, so that those checks are available to our beneficiaries after our death. If our revocable living trust begins to receive those checks each year while we are living, and they are in excess of $600, how would we still report that income on our individual tax return? And will that money be taxed at a higher rate because it is going to the trust, versus just keeping the checks in my husband’s name? 

[tagteam]

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@EGreene21 wrote:

If our revocable living trust begins to receive those checks each year while we are living.........

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A revocable living trust is a disregarded entity for federal income tax purposes. Report the checks on your individual income tax return (married filing jointly presumed here).

[EGreene21]

Once we pass, does the trustee have to file taxes on that income on a 1041? And at what rate is it taxed at? 

[tagteam]

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@EGreene21 wrote:

Once we pass, does the trustee have to file taxes on that income on a 1041? And at what rate is it taxed at? 

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The trustee will have to apply for an EIN at that time. 

Trust income tax brackets and rates may change but they are highly compressed currently.