How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

Mass Trust question - I have a 1099r from an IRA SimpleTrust.

This answer was rated:

Mass Trust question - I have a 1099r from an IRA SimpleTrust. Trust ID is on the 1099r and is coded 4. Has fed and Massachusetts state tax withholdings. The income is distributed and fed tax is refunded to the Trust (state taxes were deducted but they have no effect on the 1041 refund). On the state side, the Sched 2k-1 shows the distribution with the state taxes split out. On Mass Form 2, I will report the gross distribution (includes state taxes withheld) and the tax owed is zero. What flows through to the Mass personal return? The gross amount? Are the state taxes deductible?

Megan C :

Thank you for your question. My name is XXXXX XXXXX I would be happy to help you today

Megan C :

How are you doing today?

Customer:

Hi Megan,

Megan C :

Hello

Customer:

Hi Megan - doing great, thank you

Megan C :

The gross amount would flow through to the Mass personal tax return, and state taxes paid would be deductible

Customer:

Your answer is as I expected. Not true on the federal side since the Trust gets it back, correct? I wanted to make sure as I don't have a whole lot of Trust experience. Many thanks.

Megan C :

That is correct, the trust gets it back. You don't deduct federal taxes paid.

Megan C :

And you're welcome :-)

Customer:

OK, great - I think we're all set. Great job.

Megan C :

Thanks so much. If you would, please rate me positive so that I may receive credit for assisting you todya

Customer:

Sure will!

Megan C :

Thanks so much

Megan C and 3 other Finance Specialists are ready to help you