Parents passes away 13 days apart in Jan 09. The client had to get a federal id number before a company would release the pension to him. So a number was applied and we now
have a trust. When he received the check - it was all distributed to his other siblings and not leaving any money in the account. Now it is April and everyone has filed there taxes except my client. So am I right - the $25,000 will go into the trust on line 8 and will go to the B for a distribution? I say it is a simple since this the only thing that the trust has and ws distributed. A attorney told him it is not taxed cause it was inherited and he will not pay taxes on it so I'm confussed on it since it won't flow through on my tax program also. When it did not carry over to my client - I then assumed it was not taxed BUT I think it is. Can any one help this late in season on what to tell this poor guy so can finish a return.
Thanks
have a trust. When he received the check - it was all distributed to his other siblings and not leaving any money in the account. Now it is April and everyone has filed there taxes except my client. So am I right - the $25,000 will go into the trust on line 8 and will go to the B for a distribution? I say it is a simple since this the only thing that the trust has and ws distributed. A attorney told him it is not taxed cause it was inherited and he will not pay taxes on it so I'm confussed on it since it won't flow through on my tax program also. When it did not carry over to my client - I then assumed it was not taxed BUT I think it is. Can any one help this late in season on what to tell this poor guy so can finish a return.
Thanks