Nichols Accounting Nichols Accounting Proactive Tax and Growth Planning in Boise, Nampa, Ontario, Treasure Valley
Boise 208-345-6655 | Nampa 208-442-0188 | Ontario 541-881-1433
Certified Public Accountants
  • About Us
    • Firm History
    • Firm Philosophy
    • Staff
    • Locations
    • Referrals
    • 40 Years
  • Taxes
    • Business Tax Return Preparation
    • Personal Tax Return Preparation
    • State and Local Tax Services
    • Tax Credits
      • Energy Efficient Commercial Buildings Tax Credits
      • Research and Development Tax Credits
      • Small Business Health Care Credit
    • Tax Planning and Consulting
    • Trust, Estate, and Gift Tax
      • Estate & Gift Tax
      • Income Tax on Estates and Trust
  • Consulting
    • Financial Consulting
      • ACA Consulting
      • Bank Financing Assistance
      • Bankruptcy Consulting
      • Business Valuations
      • Cash Flow Forecasting
      • Divorce Consulting
      • Education Funding Planning
      • Employee Benefit Plan Design
      • Enterprise Advisory Planning
      • Estate Planning
      • Family Business Planning
        • Building Effective Family Farm Management Systems
        • Family Business
      • Internal Control Review
      • Litigation Support
      • Merger and Acquisition Assistance
      • Strategic Planning
      • Succession Planning
      • Trends Ratio Analysis
    • Risk Consulting
      • Forensic Accounting
      • Fraud Prevention Training
      • Internal Control Review
    • Talent Management
      • Communication
      • Job Benchmarking
    • Tax Consulting
      • Entity Planning
      • Estate Tax
      • Income Tax
      • IRS Dispute Resolution
      • Tax Planning
  • Financial Statements
    • Agreed Upon Procedures
    • Bankruptcy Accounting and Reorganization Assistance
    • Compiled, Reviewed, and Audited Financial Statements
    • Monthly Prepared CPA Financial Statements
    • Personal Financial Statements
  • Bookkeeping
    • Accounting System Set-Up and Support
    • Bookkeeping
    • General Ledger and Accounting
    • Payroll Services
  • Careers
    • Employment Opportunities
      • Administrative Professional & Para-Professional
      • Client Accounting Services Specialist
      • Human Resource Administrator
      • Senior Accountant
      • Senior Bookkeeper
      • Staff Accountant
      • Administrative Professional
      • Administrative Professional & Para-Professional
    • Firm Culture
      • Fun At Work
      • Giving Back
      • Professional Development
    • Nichols Internships
  • Industries
    • Agriculture
      • Agribusiness
      • Farm and Ranch Operations
      • Timber/Mining
    • Churches
    • Construction and Real Estate
    • Dealerships
    • Manufacturing and Distribution
    • Medical
    • Not for Profit
    • Professional Services
    • Quasi-Municipalities
    • Retail
      • Grocery
      • Restaurants
      • Retail
  • News Center
    • Blog
      • Agribusinessss
      • Estate Planning
      • Family Business
      • Tax Planning
    • Media
    • News Feed
    • Newsletter
    • Useful Links
    • Nichols Life
  • Client Portal
    • Client Documents
    • Payroll Portal
    • File Upload
    • New Client Portal

Income Tax on Estates and Trust

Like individuals and businesses, estates and trusts have the ability to earn income.  That income may be annually taxable – as estate income tax.  This is not to be confused with estate tax – the taxation on the value of your estate, less exclusion upon your passing.

Estates and nongrantor trusts must file income tax returns just as individuals do, but with some important differences. For one, their income is taxed at either the entity or beneficiary level depending on whether it is allocated to principal or allocated to distributable income, and whether it is distributed to the beneficiaries. And because their exemption amounts, tax brackets and related thresholds haven’t been indexed for inflation or modified for tax relief to the extent those for individuals have, they can be subject to higher tax rates at much lower levels of income. With the new Medicare tax on investment income on the highest tax brackets, estates and trusts pay still more taxes on incomes over $11,200, as opposed to $200,000 or $250,000 for individuals.

The complexity of estate and trust matters should be handled by professionals with experience.  The Nichols Accounting Group has professionals with expertise regarding this specific tax law.

 

Contact
Phone
Boise 208-345-6655 | Nampa 208-442-0188 | Ontario 541-881-1433
Email
CLIENTCARE@
NICHOLSACCOUNTING.COM
Newsletter
CLICK HERE TO SUBSCRIBE
Recent Tweets from @Nichols_CPA:
  • "As we continue to receive further guidance, we will continue to update our post regarding the Paycheck Protection P… https://t.co/aT5YSLgIRi"
  • "A slight delay, and some tools for the Paycheck Protection Program. https://t.co/kNb8t8D0j6"
Tax and Financial
Tool Center
Blog

Pages

  • Home
  • About Us
  • Financial Statements
  • Bookkeeping
  • Consulting
  • Tax
  • Client Portal

Pages

  • Industries
  • News Center
  • Careers
  • Tax and Financial Tools

News Center

  • Blog
  • News Feed
  • Subscribe

Financial Tools

  • Check Your Refund
  • Tax Due Dates
  • Forms
  • Retention Dates
  • Tax Rates
  • Financial Guides
  • Tax Tips

© 2021 Nichols Accounting. All Rights Reserved.

© 2021 Peppershock Media Productions, LLC.

 The Nichols Accounting Group, PC BBB Business Review Idaho Society of Certified Public Accountants Oregon Society of CPAs CPA USA Association Member of AICPA

Download