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If money is distributed to a beneficiary, then whether it is taxable or not to the beneficiary will depend on whether principal or income was distributed, and if it was income, then whether it was tax-free income or retained income from previous years that the trust has already paid tax on.
If the amount is taxable, it will be added to your other income. Then the tax would be calculated on all income. If this is all your income for the year and it is taxable, your tax could be estimated at $700 and $270 CA.
That is estimated on ordinary income of the $17,700.
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