Massachusetts Non Resident Beneficiary of Trust

[S T]

I have a Calif Taxpayer (beneficiary) that received a first and final K-1 from a Trust - Form 1041-K-1, Box 5 (other portfolio and nonbusiness income) 16,667.

Question - does this need to be reported and filed as non-residet for Mass? In reading it appears as long as it is not trade/business income, it is not taxable. Of course we do not know the source of the income

Thanks

Sandy

[TAXNJ]

I have a Calif Taxpayer (beneficiary) that received a first and final K-1 from a Trust - Form 1041-K-1, Box 5 (other portfolio and nonbusiness income) 16,667.

Question - does this need to be reported and filed as non-residet for Mass? In reading it appears as long as it is not trade/business income, it is not taxable. Of course we do not know the source of the income

Thanks

Sandy

Is this what' you read
MASS - Department of Revenue 830 CMR 62.5A.1 Non-Resident Income Tax
In part:
......Massachusetts source income derived from pass-through entities, such as partnerships, trusts, estates, limited liability companies (LLCs), or S corporations, generally is also subject to Massachusetts income taxation for non-residents. The activities of a pass-through entity are attributed to its owners, including non-resident partners, members, or shareholders. .......

Might help to contact the MASS-DoR

[Kram BergGold]

Ma k-1

You should request a MA K-1. That will answer your question.

[Roland Slugg]

It has been my experience that in almost all cases amounts reported on that line are taxable proceeds from annuities. If that's what it is in your client's case, it is not taxable by MA, and a nonresident return does not have to be filed in that state. The income does, of course, have to be reported on the beneficiary's CA return.