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Trust Tax Return

Forum|Forum|3 years ago
August 28, 2022
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My dad left cash in his New Mexico Credit Union account with the beneficiary as his trust with me as the death trustee. I set up a trust account in Texas and deposited the money there. I know I have to file a federal tax return for the trust, however I am wondering if I have to file a state tax refund since the money came from a New Mexico Credit union paid to the trustee, myself. There was no trust account in New Mexico, but the trust documentation originated in New Mexico.

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Best answer by Anonymous_

States have different rules for trust "residency".

Further, if the trust had New Mexico source income it might have to file a New Mexico return.

See https://www.tax.newmexico.gov/all-nm-taxes/2020/10/23/fiduciary-income-tax-for-trusts-and-estates

Regardless, note the income threshold for filing a return (at the link above). Trust corpus (or principal) does not count; only income/gain is considered to be taxable.

A

Anonymous_Answer

Employee

States have different rules for trust "residency".

Further, if the trust had New Mexico source income it might have to file a New Mexico return.

See https://www.tax.newmexico.gov/all-nm-taxes/2020/10/23/fiduciary-income-tax-for-trusts-and-estates

Regardless, note the income threshold for filing a return (at the link above). Trust corpus (or principal) does not count; only income/gain is considered to be taxable.