Question:
A final income tax return was filed for my parents’ trust in 2015. In 2021 the trust received income (approximately $2,400) from a claims settlement along with a 1099
. Should I file another 1041 or just report this on my individual return?
Response:
Report it on your individual tax return. It sounds like you ultimately received the income, so it would be taxable to you in any case. The trouble involved in reopening the trust with the IRS would far exceed the value of what you received.
