What is the primary form for beneficiaries receiving income from trusts and estates?

Beneficiaries who receive income from trusts and estates primarily use Form 1041. This form is specifically designed for reporting income, deductions, gains, and losses associated with trusts and estates.

When a trust or estate generates income, it is required to file Form 1041 with the IRS. The form reports the income earned by the trust or estate, and any taxable distributions made to beneficiaries. When beneficiaries receive distributions, they typically receive a Schedule K-1 (Form 1041), which provides detailed information about the income they need to report on their individual tax returns, usually leading to the use of Form 1040 to report their personal income.

In contrast, other forms such as Form W-2 is used for reporting wages and salaries paid by employers, while Form 1099 is used to report various types of income other than wages, salaries, and tips, such as freelance or interest income. Form 1041 is unique in its purpose of reporting trust and estate income distribution, making it the primary form regarding beneficiaries' income derived from these entities.