A trust is required to distribute $12,000 annually to each of three beneficiaries (total of $36,000 required distributions). For 2020, the trust has $80,000 DNI and makes the following distributions: $20,000 to Justin, $12,000 to Charla, and $90,000 to Erin. 

(a) How much of his distribution does Justin need to report on his tax return? 

(b) How much of Justin’s distribution is tax-free? 

(c) How much of her distribution does Charla need to report on her tax return? 

(d) How much of Charla’s distribution is tax-free? 

(e) How much of her distribution does Erin need to report on her tax return? 

(f) How much of Erin’s distribution is tax-free？

Answer rating: 100% (QA)

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