Page 181 - Other Income for Individuals
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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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