Non liquidating dividends
However, the parent can choose to include the child's interest and dividends on the parent's return if certain requirements are met. For more information about the tax on unearned income of children and the parents' election, see Pub. Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust is generally taxable income.You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc., from the fiduciary.It explains what investment income is taxable and what investment expenses are deductible.It explains when and how to show these items on your tax return.
Box 1g is used for disallowed losses from wash sale transactions. This publication provides information on the tax treatment of investment income and expenses.Your investment income is generally not subject to regular withholding.However, it may be subject to backup withholding to ensure that income tax is collected on the income.Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.