Trust Income - Residency when receive income or state Trust established in

Forum|Forum|2 years ago
March 18, 2024
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How do you account for capital gains/interest/dividends earned from Trusts on Massachusetts part year residency tax return? In the state the Trust was established (massachusetts) or the state of beneficiary residency (florida)?

Trusts were established in Massachusetts, but I am now resident of Florida, filling out a part year residency tax return for Massachusetts.

Anonymous_

Employee

Florida does not levy an income tax on individuals or trusts.

As a result, you need to figure out whether Massachusetts will assert that the trust is a "resident" that is subject to be taxed regardless of where the trustee resides.

Note that if this is a grantor trust, then it is likely disregarded for federal and Massachusetts income tax purposes and any tax liability would devolve to the grantor individually.