This guide covers two scenarios for reporting trust income on an individual tax return:

• When the Trust is a Client
• When the Trust is Not a Client

1. When the Trust is a Client

Ensure that the individual taxpayer is linked to the trust as a beneficiary through the "Relationships" tab. 

Once this relationship is established, the trust income will be automatically included in the individual’s tax return after the trust’s tax return is completed.

2. When the Trust is Not a Client

Confirm that the trust income reporting feature is enabled in your tax filing software. If it is not enabled, turn it on before proceeding.

Navigate to the "Profit & Loss" tab of your tax return form to report income details accurately. Use the "Add Worksheet" for entering trust income data.

Enter the taxable trust income amount which is the distribution amount from the trust that is assessable. Also enter the equivalent accounting income which may represent the gross distribution from the trusts based on accounting records.

It is important to input both taxable and accounting trust income values to avoid errors and to maintain correct reconciliation between accounting and tax reporting.

Additional Considerations

If taxable income is received from multiple trusts, each trust’s income should be entered separately to maintain clarity and ensure precise reporting.