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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Question I am a Catholic nun and receive no personal income.

Resolved Question:

Question:
I am a Catholic nun and receive no personal income.
My father died 2 years ago and left me a modest trust fund for me via my sister as the trustee. The funds are to be used by me to visit my family who live at a distance.

Last year the fund made about $350 dollars in interest and I used about $3000 of the fundes. Do I need to file an income tax return.

Thank you.
MP
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.
Did the trust fund give you a K-1 reporting interest of $350?

If this is the only income that no tax is due and you are not required to file your personal tax return.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

RD and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
I cannot read your answer! The screen clicks ahead. Is this a scam??
Expert:  RD replied 6 years ago.
This is not a scam. I am once again posting the answer for you.

Did the trust fund give you a K-1 reporting interest of $350?

If this is the only income than no tax is due and you are not required to file your personal tax return.
Customer: replied 6 years ago.

Thank you for your help!

 

I received 2 forms

--a Client Statement Forms 1099 and 2009 Year End Statement

 

--and a Reserved Client Statement Forms 1099 and 2009 Year End Statement

Expert:  RD replied 6 years ago.

Are they from the same payer? Are they reported under you SS# XXXXX are both reporting a total interest amount of $350?

Customer: replied 6 years ago.

I'm pretty sure that it is under my SS.

 

The total from the two is $379.

Expert:  RD replied 6 years ago.

If this is the only income that it is not taxable and you do not have to file a tax return. Distribution from trust of $3000 is not taxable as it is not income but a distribution from principal. Normally trust would issue a K-1 if anything would be taxable on your personal tax return.

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

Customer: replied 6 years ago.

Thank you.

 

 

Expert:  RD replied 6 years ago.
Thanks for using the service