If you are a beneficiary of an estate or trust, use Part III to report your part of the income (even if not received) or loss. You should receive a Schedule K-1 (Form 1041) from the fiduciary. Your copy of Schedule K-1 and its instructions will tell you where on your return to report the items from Schedule K-1. Do not attach Schedule K-1 to your return. Keep it for your records.
If you are treating items on your tax return differently from the way the estate or trust reported them on its return, you may have to file Form 8082.
If you have estimated taxes credited to you from a trust (Form 1041, Schedule K-1, box 13, code A), enter
ES payment claimed and the amount on the dotted line next to line 37. Do not include this amount in the total on line 37. Instead, enter the amount on Form 1040, line 63, or Form 1040NR, line 59.
A U.S. person who transferred property to a foreign trust may have to report the income received by the trust as a result of the transferred property if, during 2008, the trust had a U.S. beneficiary. See section 679. An individual who received a distribution from, or who was the grantor of or transferor to, a foreign trust must also complete Part III of Schedule B (Form 1040) and may have to file Form 3520. In addition, the owner of a foreign trust must ensure that the trust files an annual information return on Form 3520-A.