Artículo Beneficiary of an estate or trust.. Beneficiary of an estate or trust.

id="en_US_2025_publink1000171408"> Beneficiary of an estate or trust. Interest you receive as a beneficiary of an estate or trust is generally taxable income. You should receive a Schedule K-1 (Form 1041) from the fiduciary. Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040 or 1040-SR. Taxpayer identification number (TIN). You must give your name and TIN (either a social security number (SSN), an employer identification number (EIN), an adoption taxpayer identification number (ATIN), or an individual tax identification number (ITIN)) to any person required by federal tax law to make a return, statement, or other document that relates to you. This includes payers of interest. If you don’t give your TIN to the payer of interest, the payer will generally be required to backup withhold on the interest payments at a rate of 24%, and you may also be subject to a penalty. Use Form W-9 to provide the necessary information. See Form W-9 and its instructions. TIN for joint account. Generally, if the funds in a joint account belong to one person, list that person’s name first on the account and give that person’s TIN to the payer. (For information on who owns the funds in a joint account, see Joint accounts , later.) If the joint account contains combined funds, give the TIN of the person whose name is listed first on the account. These rules apply to both joint ownership by a married couple and to joint ownership by other individuals. For example, if you open a joint savings account with your child using funds belonging to the child, list the child’s name first on the account and give the child’s TIN. Form W-9 and its instructions provide: If this Form W-9 is for a joint account (other than an account maintained by a foreign financial institution (FFI)), list first and then circle the name of the person or entity whose number you entered in Form W-9, Part I. If you are providing Form W-9 to an FFI to document a joint account, each holder of the account that is a U.S. person must provide a Form W-9. See Form W-9 and its instructions. Custodian account for your child. If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child’s TIN to the payer. For example, you must give your child’s SSN to the payer of interest on an account owned by your child, even though the interest is paid to you as custodian. Penalty for failure to supply TIN. If you don’t give your TIN to the payer of interest, you may have to pay a penalty. See Failure to supply SSN under Penalties in chapter 1. Backup withholding may also apply. Backup withholding. Your interest 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. Under backup withholding, the payer of interest must withhold, as income tax, on the amount you are paid, by applying the appropriate withholding rate. The current rate is 24%. Withholding is required only if there is a condition for backup withholding, such as failing to provide your TIN to the payer or failing to certify your TIN under penalties of perjury, if required. Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. For more information, see Backup Withholding in chapter 4. Reporting backup withholding. If backup withholding is deducted from your interest income, the amount withheld will be reported on your Form 1099-INT. The Form 1099-INT will show any backup withholding as “Federal income tax withheld.” Joint accounts. If two or more persons hold property (such as a savings account or bond) as joint tenants, tenants by the entirety, or tenants in common, each person’s share of any interest from the property is determined by local law. Income from property given to a child. Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law becomes the child’s property. Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation. Savings account with parent as trustee. Interest income from a savings account opened for a minor child but placed in the name and subject to the order of the parents as trustees is taxable to the child if, under the law of the state in which the child resides, both of the following are true. The savings account legally belongs to the child. The parents aren’t legally permitted to use any of the funds to support the child. Form 1099-INT. Interest income is generally reported to you on Form 1099-INT or a similar statement by banks, savings and loan