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: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

My wife and I receive $2,500 a year from a small trust her

This answer was rated:

My wife and I receive $2,500 a year from a small trust her brother is in charge of. He wants to know how much more we have to pay in taxes each year so he can reimburse us for that amount from the trust. I keep telling him you can't do that.

Who is right?

Megan C :

Hello, and thanks for your question. My name is XXXXX XXXXX I would be happy to help.

Megan C :

You're right. You don't need to be reimbursed from the trust for the taxes.

Megan C :

If he reimburses you from the trust, that would be an additional disbursement and you would owe tax on that too

Megan C :

But, $2,500 isn't much and it should not increase your taxes by a large amount.

Customer :

That's what I keep telling them "If he reimburses you from the trust, that would be an additional disbursement and you would owe tax on that too" there are also three other beneficiaries in the trust who may not have to pay any tax. In the end they would be getting cheated out of some of the funds. Correct?

Megan C :

You're correct. You don't need to be reimbursed from the trust for the tax

Customer :

Thank you! I will have them pay me for you to answer this question

Megan C and 2 other Tax Specialists are ready to help you