Earlier this year, I received a 2013 Form 1041 Grantor Letter from the Liquidating Trust of a company where I worked which went bankrupt. I received a distribution from the trust in 2013 because that company still owed me money. I assume the trust sent me the Grantor Letter in lieu of a Schedule K-1.
Here's the key part of Grantor Letter:
The following income, deductions and credits are to be reported on the federal income tax return of the above named grantor, if required. Federal Information:
- Income: - Other income: - Litigation settlement proceeds: $XXX
- Deductions: - Fiduciary fee: $XXX - Attorney and accountant fees: $XXX - Administration cost: - Administrative expenses: $XXX - Other deductions not subject to 2 percent limitation: - Contracted services: $XXX
My questions:
- Does the "Other income" above go on line 21 (Other income) of Form 1040, or on line 33, column (f) in Part III (Income or Loss From Estates and Trusts) of Schedule E and then on line 17 (... trusts, etc.) of Form 1040?
- Do the deductions above go on line 33, column (e) in Part III of Schedule E, or on Schedule A (which I'm not filing since I'm taking the standard deduction)?
Thank you in advance for your responses.