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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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If you have a Special Needa Trust and the trust company ...

Customer Question

If you have a Special Needa Trust and the trust company sends taxes every year on the money, do i also pay taxes on the money they send to me each month? Iam also disabled and get SS each month.
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

The Special Need Trust may pay full amount of taxes or distribute all or part of its tax liability on beneficiaries.

If any taxable income is distributed to you - the administrator would be required to issue the form K-1 - http://www.irs.gov/pub/irs-pdf/f1041sk1.pdf - to you as a beneficiary and to the IRS.

If you received that form and it is indicated your share of taxable income - you need to report such income on your tax return. If you received the form and it does not report any taxable income for you - you do not need to report anything on your tax return.

If you did not received the form - please contact the trust company.

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22704
Experience: Taxes, Immigration, Labor Relations
Lev and 6 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Reply to LEV's Post: I dont know what you said.I did not get an answer sorry.
Customer: replied 6 years ago.
Reply to LEV's Post: Do you need more information?
Expert:  Lev replied 6 years ago.

I am reposting the answer below... Let me know if any clarification needed.

The Special Need Trust may pay full amount of taxes or distribute all or part of its tax liability on beneficiaries.

If any taxable income is distributed to you - the administrator would be required to issue the form K-1 - http://www.irs.gov/pub/irs-pdf/f1041sk1.pdf - to you as a beneficiary and to the IRS.

If you received that form and it is indicated your share of taxable income - you need to report such income on your tax return. If you received the form and it does not report any taxable income for you - you do not need to report anything on your tax return.

If you did not received the form K-1 - please contact the trust company.

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