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 Stephanie B. Your Own Question
Stephanie B.
Stephanie B., Enrolled Agent
Category: Tax
Satisfied Customers: 556
Experience:  MTax, EA, QuickBooks Proadvisor. Over 15 years accounting and tax experience specializing in individual and small business.
54321014
Type Your Tax Question Here...
Stephanie B. is online now
A new question is answered every 9 seconds

Is there a deadline for when a schedule K1 should be mailed?

Resolved Question:

Is there a deadline for when a schedule K1 should be mailed out to me as a beneficiary of a trust account?

Submitted: 5 years ago.
Category: Tax
Expert:  Stephanie B. replied 5 years ago.

Unfortunately, the filing date for the trust is normally a calendar year so the trust return is not due until April 18, 2011. There is no special rule for getting the K-1s to the beneficiaries prior to that date. So, in short, the grantor has until April 18th to get the K-1 to you.

Customer: How will I be able to do my taxes if they don't give me the information before then? Do you know if I will have to pay taxes for the money received from a family trust account?

Stephanie B: Without complete information, you would have to file an extension and pay the assumed tax with that extension to avoid late payment penalties. I suggest giving everything else to your tax preparer, or in the software if you prepare your own return, so when you receive that K-1 all you have to do is enter it and you are done. As for paying taxes for money received from a family trust account, that depends on the individual trust and its earnings. There could be taxable income but it may not be the amount you received in cash as some of the funds could be corpus of the trust.

Customer: I have received about $3000 from a revocable living trust agreement after the settler died. Does that help know if I will need to pay more taxes on the money?

Stephanie B: Unfortunately, that doesn't help. Part of that could have been assets placed in and not all income. I suggest contacting the grantor or the accounting firm handling the trust and ask them for an ETA for the K-1. If you have not done so already.

Customer: As a beneficiary am I allowed to get that information from the accounting firm? The trustee is my step-sister and she will not talk to us.

Stephanie B: The accounting firm should be able to give that information to you since you are the beneficiary. In addition, if you are calling and requesting it, sometimes they speed up the process if they can.

Customer: Okay, I have my trust agreement with me. Do you know if the tax information (if I have to pay or not) would be in that somewhere?

Stephanie B: When you contact the accounting firm you can always start the conversation as "I was just confirming that you have my correct mailing address on my K-1 such and such trust. And do you have any idea when that was or will be mailed out to me?" Normally, if they say that all the interest income or dividend income or business income will flow to such and such beneficiary and corpus remains in the trust, then it may be all taxable. However, if any corpus (which is the assets put into the trust) is coming out, that will not be taxable. Plus, you may not know what type of income you received. If assets were sold, it could be capital, if it is interest income, it may be ordinary, if it is dividend income, it could be qualified. All of these items are taxed at different tax rates, so it is very difficult to determine taxable income without all the definites which would be on that K-1.

Customer: Well, thank you for the information. I guess I will need to contact her accountant tomorrow. I can't think of anything else to ask at this time. Have a great day.

Stephanie B: Thank you, ***** *****

Stephanie B., Enrolled Agent
Category: Tax
Satisfied Customers: 556
Experience: MTax, EA, QuickBooks Proadvisor. Over 15 years accounting and tax experience specializing in individual and small business.
Stephanie B. and 6 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    577
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    577
    10 years experience
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    1245
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3882
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    11072
    15years with H & R Block. Divisional leader, Instructor
  • http://ww2.justanswer.com/uploads/YI/yirtual/2015-3-12_43754_egan.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    8621
    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2884
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    1837
    Over 20 Years experience