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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10137
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My mother died August 30, 2014. I filed her individual

Customer Question

My mother died August 30, 2014. I filed her individual income tax forms, but she earned a small bit of money from stock dividends this year. The amount was approximately $5,000.00. What form do I need to file for this income that her trust acquired? I understand that I cannot file it until 2016.
Mary
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi Mary,

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This will be the 1041 (Trust and Estate income tax return)

Expert:  Lane replied 1 year ago.

IRS Form 1041, U.S. Income Tax Return for Estates and Trusts, is required if the estate generates more than $600 in annual gross income.

Expert:  Lane replied 1 year ago.

For calendar year estates and trusts, file Form 1041 and Schedule(s) K-1 on or before April 15 of the following year. For fiscal year estates and trusts, file Form 1041 by the 15th day of the 4th month following the close of the tax year. If more time is needed to file the estate return, apply for an automatic 5 month extension of time to file using IRS Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.

Expert:  Lane replied 1 year ago.

If the intent here is to distribute everything to beneficiaries and the trust is only there (irrevocable because there was a living trust) then everything can be distributed, you'll take distribution deduction for the trust for any income generated (trust rates are much higher than individual rates), and send the beneficiary(ies) a k-1 that lets them pay the income tax rather than the trust (more money for the beneficiaries that way).

Expert:  Lane replied 1 year ago.

let me know what questions you have from here:

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Here's the from and instructions ... (although much easier done by using turbo-tax or one of the other packages)

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Form 1041, U.S. Income Tax Return for Estates and Trusts ...

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http://www.irs.gov/pub/irs-pdf/i1041.pdf

Expert:  Lane replied 1 year ago.

If this HAS helped, and you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's how we're credited for the work here)

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Thanks,

Lane