What is the taxation of a beneficiary?

Mike: What is the taxation of a beneficiary?
If a beneficiary receives money for his/her trust (complex trust),does she or he need to include the money in her/his tax return? If the inclusion is required, is not it a double taxation? fiduciary income tax and individual income tax on the same tax base??

Answers and Views:

Answer by bbcpa7
To the extent that the distribution was from taxable income, yes. You will need a form K-1 from the Trustee to know how much to report on your return. If you are trying to plan (2007 distributions), the trustee may be able to help you by giving you an estimate on how much taxable income was in the distribution.