I am about to receive a check as a final distribution of a revocable trust. Will I owe taxes on it next year?

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Andrew,

The fact you receive money from an irrevocable trust isn’t sufficient to determine whether you are responsible for reporting the payments on your state and federal tax returns. Instead, it depends on the terms of the trust. If the grantor requires all trust income distributed to beneficiaries, you will be responsible for paying tax on your share, regardless of when you receive the money. On the other hand, if the money you receive represents a portion of the trust principal, or income the trust has already paid taxes on, you receive the distribution without any tax consequences.  To determine this you should contact the Trustee of the Trust.

Victor Santucci  EA

Andrew,

Do you need further assistance with your original question?

Victor Santucci  EA