Tax Tip: Trusts and 65-day election due by March 6, 2023

TaxTip: Move income from a trust to an individual in a lower tax bracket

The tax brackets for trusts are more compressed than individuals, so even small distributions can bump a trust down a tax bracket or two. If a trust is in a higher tax bracket than the beneficiary, moving income from the trust to the individual by way of a distribution will save tax dollars overall.

There is still time to make trust distributions for 2022 through Monday, March 6th. Any distribution within the first 65 days of the tax year can be treated as having been made on the last day of the preceding tax year.