Solved: As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest from CD bought w/trust funds. Does trust fund need to file income tax? Form? .
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As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest from CD bought w/trust funds. Does trust fund need to file income tax? Form? .

$262 interest is only income for 2018. Supplemental needs trust fund established several years ago for my sister who receives SSDI as her sole source of income.

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As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest from CD bought w/trust funds. Does trust fund need to file income tax? Form? .

"Does trust fund need to file income tax? Form? ."

If the trust was established with your sister's own assets, then chances are that the trust is a grantor trust and, as a disregarded entity, the interest income can be reported on her income tax return.

If the trust has its own taxpayer ID number (EIN), or is otherwise a nongrantor trust, then the trust will file an income tax return on Form 1041 because it has taxable income for the year (defined as gross income less deductions).

See https://www.irs.gov/instructions/i1041#idm140630132225648

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Level 15

As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest from CD bought w/trust funds. Does trust fund need to file income tax? Form? .

"Does trust fund need to file income tax? Form? ."

If the trust was established with your sister's own assets, then chances are that the trust is a grantor trust and, as a disregarded entity, the interest income can be reported on her income tax return.

If the trust has its own taxpayer ID number (EIN), or is otherwise a nongrantor trust, then the trust will file an income tax return on Form 1041 because it has taxable income for the year (defined as gross income less deductions).

See https://www.irs.gov/instructions/i1041#idm140630132225648

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