dale-courtright

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Can a Survivors Trust receive federal and state income tax refund?

Forum|Forum|7 years ago
June 2, 2019
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A Family Survivors (complex) Trust receives monthly annuity payments from an insurance company and that company withholds federal and state income tax. The exact amounts withheld show up on my Trust 1041 federal and 141 state as refunds. Does the Trust receive the refunds or should they flow through to the beneficiary with all the other Trust income?

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Best answer by Anonymous_

" Does the Trust receive the refunds or should they flow through to the beneficiary with all the other Trust income?"

Except for backup withholding, withheld income tax cannot be passed through to beneficiaries.

See https://www.irs.gov/instructions/i1041#idm140630131254624

Anonymous_Answer

Employee

" Does the Trust receive the refunds or should they flow through to the beneficiary with all the other Trust income?"

Except for backup withholding, withheld income tax cannot be passed through to beneficiaries.

See https://www.irs.gov/instructions/i1041#idm140630131254624

dale-courtrightAuthor

So I should file the Fed and State returns and expect refunds from both? This is a Family Survivors (complex) Trust