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A distribution from a trust is not a gift. Whether or not the distribution is taxable depends on whether or not the distribution includes net income of the trust received during the trust's tax year or is just a distribution of corpus (money already in the trust, not income to the trust such as interest). If the distribution includes distributable net income, the portion of the distribution that is income will be reported to you on a Schedule K-1 (Form 1041), making the income taxable on your personal tax return. Ask the trust trustee how much taxable income will be reported to you on the Schedule K-1.
A distribution from a trust is not a gift. Whether or not the distribution is taxable depends on whether or not the distribution includes net income of the trust received during the trust's tax year or is just a distribution of corpus (money already in the trust, not income to the trust such as interest). If the distribution includes distributable net income, the portion of the distribution that is income will be reported to you on a Schedule K-1 (Form 1041), making the income taxable on your personal tax return. Ask the trust trustee how much taxable income will be reported to you on the Schedule K-1.
Gifts received are not taxable and are not entered on your tax return unless they were in a tax deferred account of some type.
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