Should I File a Trust Income Tax Return?
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
Photo by Markus Winkler on Unsplash
. 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.
Related Articles
Don’t know how your trust works?
Whether you’re creating a plan, managing a trust, or are a beneficiary of a trust, this book is your easy-to-read roadmap.
