3

Let's say that a person is a full time student under 24 and the beneficiary of a trust. Do the trust payments count as self support for tax purposes? Can you provide a source for your answer?

EDIT: The question is if this counts as support as described by the rules for whether one qualifies as a dependent.

2

The distribution of corpus (principal) is not taxed, the K-1 would reflect pass through taxable items such as dividends or capital gains looking no different on the kid's 1040 than if he owned the stocks. I've handled trusts and the K-1 reporting for 10 years. This is how it is.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.