When do I report income from inherited money from a trust filing on fiscal year basis?

[taxquestions44]

I have a 1099 from an account that was opened with money inherited from an irrevocable trust.  The CPA is using the fiscal year for filing for the trust.  That will end April 30, 2026.  He will create a K-1 and the tax return for the trust will then be filed before August 15, 2026.  The CPA is saying that I should hold on to the 2025 1099 from the inherited account and not file it until I file my individual tax return at the end of 2026, thus filing income recorded on both the 2025 and 2026 1099s on my 2026 individual tax return.  Is that right?  It seems to me that I should file the income on the 2025 1099 with my 2025 individual tax return because it has income from funds that are now in my name, just like any other investment account.

[dmertz]

A Schedule K-1 (Form 1041) for a trust tax year ending on April 30, 2026 will be reportable on your 2026 tax return.

[taxquestions44]

Thank you.  Will I also enter the data from both the 2025 and 2026 1099s into the the 2026 tax program, along with the K-1?

[dmertz · Accepted solution]

It's not clear what type of Form 1099 you are talking about and whether the form was issued to you or to the estate.   If you have some type of 2025 Form 1099 issued in your name and taxpayer identification number, it goes on your 2025 tax return.