I live in CA but there is a trust in FLorida for which I am a beneficiary, When I receive the income monthly ddo I have to report it on state income tax form? Thank you.
Estate Planning Attorney
Yes. If you receive income distributions from the trust, you must report them on your state and federal income tax returns. You probably would not need to file a Florida state income tax return, if you are a California resident, but it would be prudent to confirm this with a CPA or tax advisor. If you are receiving distributions of principal from the trust, you should not have to pay income tax on the principal you are receiving, just on the income portion.
Disclaimer: This general response is not intended to create an attorney-client relationship.
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As stated, income distributions are taxed but principal distributions are not. As a California resident you will need to include the income distributions on your state income tax return. Check with a Florida tax expert (CPA or attorney) regarding whether you need to file anything there (however, I don't think you will).