John B. Whalen Wills and Probate Law Blog on Lawyers.com

Pa Estates and Income Tax Returns?

Wednesday, October 28, 2009 by John B. Whalen

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Individuals make income; Estates make income.

For more from my Websites: http://johnbwhalenjr.com ~ http://whalenwillslaw.com

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Individuals make income; Estates make income

  • Individual income is called just that Individual Income
  • Estate (and Trust) income is called Fiduciary Income

In general, income and deductions for Individuals and Estates is

  • Decided in the same manner
  • Calculated in the same manner
  • Reported in the same manner

Therefore

  • Individuals must file Individual Income Tax returns
  • Estates (and Trusts) must file Fiduciary Income Tax returns

For further reference, the IRS website states that

  • The U.S. Income Tax Return for Estates and Trusts (Form 1041) is used
  • to report the income, deductions, gains, and losses of estates and trusts,
  • as well as distributions to beneficiaries and income tax liability
 
Posted at 15:59 PM
Topic: Wills and Probate
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