How Do I Report My Trust Income?
How is my fiduciary income from an irrevocable trust taxed. I received $8,880. What IRS forms do I file?
I am assuming you are asking as a trust beneficiary. If so, your trust income is taxed just like interest, dividend or capital gain income. The trust should send you a K-1 form which is just like a 1099 from a bank or investment company. You report the income on your tax return the same way, though some may be interest and some capital gain.
If, on the other hand, you are asking as a trustee, then you must file a 1041 fiduciary income tax return. You will report all the dividend, interest and capital gain income and may deduct trust expenses, including legal, accounting and trustee fees. If the trust has retained the income, then it must pay the tax. But if it has distributed it to the beneficiaries, then it passes through to them and as trustee you must issue them the K-1 forms described above.