Any accountants among us? - I have a d4a Special Needs Trust Fund question

Discussion in 'The Watercooler' started by ctmom05, Mar 29, 2010.

  1. ctmom05

    ctmom05 Member

    The subject line pretty much says it all.

    I was the trustee for my 22 yr old's d4a special needs trust fund. It was established in 2009 and the money was all spent the same year.

    My concern is tax related. I need to know whether a federal and state return needs to be filed. The trust is made up of 3 separate accounts; 2 of which earned a total of < $100 interest.
  2. Star*

    Star* call 911

    Not a CPA but I think you could call the bank and get the information you need on answering that one.
  3. busywend

    busywend Well-Known Member Staff Member

    The interest has to be claimed as income.
    I assume the other was part of an estate? It depends on where the money came from. If it would have been taxable to the deceased person, it will be taxable to whomever inherits it. Since it was spent in one year I assume it is not large enough to be estate taxed.