I just received a 2019 Fiduciary Form 1041 Grantor Letter. It says it's for tax year ending 12/31/19. Do I need to amend my 2019 personal return?

[Anonymous_]

" It says it's for tax year ending 12/31/19."

Since the tax year ending is 2019 on the K-1, it should be filed (or should have been filed) with your 2019 federal income tax return. 

If your individual return figures change after entering information from the K-1, then you would likely need to file an amended 2019 return.

[vtpeco]

Thanks for the reply, however. It is NOT on a K-1. It's just a Grantor Letter from a trustee. It just says the following 'The following income, deductions and credits are to be reported on the federal income tax return of the above named grantor, if required.'  I am the grantor and then it just lists a bunch of information...

Interest Income.....8

Short Term Capital Gain (Loss)....-500

Other Income....

    Settlement Income.....25

    Other Income...............0

....

In the cover letter, it does say that this information has been provided to the IRS and that the information should be entered in my tax return...but shouldn't I have gotten this months ago if it were to be included in my tax return?

[Critter-3]

The form 1041 was due 9/15 if they were on extension ... so if it is not marked final then you will need to wait for this information every year.  Since they did not send a formal K-1 form you are required to enter the information in the proper sections of the tax return ...

Interest Income.....8    Enter as bank interest

Short Term Capital Gain (Loss)....-500  enter as cap loss on Sch D

Other Income....

    Settlement Income.....25  

    Other Income...............0

You can report it as other income on Sch 1  line 8. Here's how to enter it in TurboTax.

• Click the Federal Taxes tab ( Personal in the Home & Business version)
• Click Wages & Income. (Personal income in the H & B version)
• On the screen "Your 2019 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.

[vtpeco]

Thank you. We just found out the Trust had filed an extension so that is why we just received the fiduciary form. I will have to amend our 2019 tax return and remember to file an extension next year. Thanks again.

[vtpeco]

I'm trying to amend my return but TurboTax makes it VERY difficult to enter data manually. The new tax forms I got, tell you which form and line to enter the data in but I can't seem to access the forms directly in TT. I am using the online version and DO NOT have a PERSONAL tab or a TAX FORMS tab.  As mentioned above, I cannot access a PERSONAL tab to enter my Other Income. Any way to enter my amended data manually into the forms directly?

[Anonymous_]

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@vtpeco wrote:

Any way to enter my amended data manually into the forms directly?

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No, only the desktop (installed) versions support Forms Mode for manual entry of data.

[Critter-3]

If you are using the ONLINE program you will not have the personal tab ... that is for H&B download users only...  you will click on the federal tab and return to the income input section ...  and the ONLINE version has no direct form entry. 

• Click the Federal Taxes tab ( Personal in the Home & Business version)
• Click Wages & Income. (Personal income in the H & B version)
• On the screen "Your 2019 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.

The income will be reported on Sch 1 line 8 with the description that you entered.

[chumba62]

What do you do when the Other Income is separated into multiple line items.

e.g.

Settlement Income 795

other income 0

Salaries and Wages -470

Rents -24

Property Taxes -312

etc.

[vtpeco]

chumba62,  I had multiple items under my 'Other Income' also.  I just added (or subtracted) it all up to get a total.

[Anonymous_]

@chumba62 

You posted your message to a very old thread. Did you receive a grantor letter?

[chumba62]

Yes I received a grantor letter from a trust.  I will have to amend my 2021 return and just wanted to know how to handle the other income items.  It seems like the interest income, short-term Capital Gain, and long-term capital gain can be put in the interest and form 8949.

I also have a section 1231 gain that says to enter on Form 4797.  Where would that go?

[Anonymous_]

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@chumba62 wrote:

I also have a section 1231 gain that says to enter on Form 4797.  Where would that go?

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Part I, Line 2.

[Anonymous_]

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@Anonymous_ wrote:

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@chumba62 wrote:

I also have a section 1231 gain that says to enter on Form 4797.  Where would that go?

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Part I, Line 2.

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Also, note that if you enter this as the sale of business property in TurboTax, you will have to supply a date of sale and date of acquisition.

[Critter-3]

FYI ... in the TT program you can enter all of this in the K-1 entry section even if you did not get a formal K-1 form ... simply enter in a fake EIN # to get past that entry place  if there is not one on the letter.