Trust Income?

[lshuling]

1st year of Trust with any income. Last year 2013 all assets were on the Estate Tax Return. Were transferred in probate in Jan 2014. Deceased's 2011 and 2012 tax returns were filed in 2013, died in 2012. The personal return had a state refund that was received in 2014 $10,020. If this was deducted on schedule A of 1040 is it income to the Trust?

[Roland Slugg]

Possibly. It works the same as if the refund had been received by the decedent. Thus, all, some or none of the refund could be taxable to the trust that received it.

[lshuling]

Thanks, that is what I thought. I have my client looking into the sched A now.