j-kanabis
Level 3

Thank you.

In researching this before I asked the community I found only the following example:

Payments on behalf of beneficiary:  A trust pays medical expenses of $ 6,000 directly to medical service providers. The Trust has  $ 10,000 income (interest and dividends). The Schedule K-1 reflects a $ 6,000 income distribution to beneficiary.

Note that such medical expenses would also be an itemized deduction on the beneficiary's individual income tax return.  Note of this should be included on Schedule K-1 Line 14H.

(Of course it is not mentioned or exampled if the beneficiary can take more medical expenses on 1040 Sch A if the trust  paid more medical expenses than the  $ 10,000)

0 Cheers