View Full Version : Federal income taxes on trust funds
Jerome Kahler
Jun 27, 2013, 07:06 PM
My Mother set up a trust fund for my brother and I. She died in 2000 and I started receiving a monthly check from then till present. I have paid Federal income taxes on this money since. Now I wonder if I have owed any taxes. I live in Arkansas and have received an average monthly check of $1600. My only other income is a SS check for $450/month. My age is 78.
joypulv
Jun 27, 2013, 08:07 PM
You probably didn't owe any. The trust is supposed to send you a year-end statement for tax purposes.
ebaines
Jun 28, 2013, 05:34 AM
The trust is supposed to send you a year-end statement for tax purposes.
Right - you should receive a form called "K-1" at the end of the year which documents the amount of income you need to report on your taxes. Have they been doing this?
AtlantaTaxExpert
Jun 28, 2013, 06:37 AM
Just checked; you will have a tax liability of about $985, which is assessed exclusively on the trust income