EXAMPLE C:14-1 For calendar year 2021 , a trust reports taxable income of $15,000, all from interest on corporate bonds. Its tax liability is $3,868, ignoring the 3.8% tax on net investment income. In contrast, an unmarried individual not qualifying as a head of household would owe taxes of $1,601 on $15,000 of taxable income. Assuming that MAGl also is $15,000, the additional tax on the trust net investment income is $74[($15,000-$13,050)xx0.038]. No Double Taxation. Unlike the situation for corporations, no double taxation of income earned by an estate or trust (a fiduciary taxpayer) occurs because an estate or trust receives a deduction for the income it distributes to its beneficiaries. The beneficiaries, in turn, report the taxable portion of