Page 181 - Other Income for Individuals

Estate and trust income

Estate & Trust

 An estate or trust, unlike a
partnership, may have to pay
federal income tax.

 If you’re a beneficiary of an
estate or trust, you may be taxed
on your share of its income
distributed or required to be
distributed to you.
 However, there is never a double
tax. Estates and trusts file their
returns on Form 1041, U.S.
Income Tax Return for Estates
and Trusts, and your share of the
income is reported to you on
Schedule K-1 (Form 1041).

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