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I am receiving money from a trust and was wondering if I need some sort of form or something for taxes?
My father died 2 years ago, and he left a trust for myself and 2 brothers. My brother is the administrator for the trust. The trust says that all the $ should be split by 3, so we all will receive around $150,000 each. Is there some sort of tax form that goes along with this? I am pretty sure I don't need to pay income tax on this, but am not positive. Do I need to put this down somewhere on the tax form when I file? Thanks for your help!
2 Answers
- chatsplasLv 71 decade agoFavorite Answer
There is a form put out by the estate after distribution--K-1. It's the equivalent of a W-2 or 1099 for an estate. Generally the distribution is not taxable, but any income on the money while waiting for distribution IS taxable. And K-1 info is included in your tax return, and may delay your filing.
Source(s): tax pro - MathewLv 71 decade ago
Income distributed to you from a trust is reported to you and the IRS on a IRS form K-1. It may or may not determine the tax-ability of that distribution. In most cases inheritance funds are not taxable for federal income tax purposes. However with $150k involved it would be wise to contact a tax professional.
