Trust tax return Chicago Illinois

Updated July 22, 2015
Trust Tax Return Chicago Illinois
IRS Form 1041 is the information return used to report income on trusts. Any trust which has taxable income or that receives more than $600 in a given tax year is required to file an income tax return.
In general, the trust’s entire income for its tax year must be reported and filed by the fiduciary. If income is required to be distributed currently, or is distributed to a beneficiary, then the trust or the estate is regarded as a pass through entity in respect to the income. Generally the beneficiaries are taxed on the part of the income currently distributed and the trust or estate is taxed on the portion that it accumulates. The income allocated to any beneficiary maintains the same character in the hands of the beneficiary as it had in the hands of the trust or the estate.
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Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.