Business Turbotax software for Trusts

[Gamze]

Hi, I need to complete a trust return for my 94 year old dad.  I am confused and can not find one single tax service in the Seattle area to help.  Is there anyone here able to help me with a very simple trust return.  Trust has a paid off home and a savings account and that's all.  

[tagteam]

The link below is to a site with a directory of Enrolled Agents who are tax return preparers generally.

https://taxexperts.naea.org/expertdirectory

Also, make sure that the trust is not a grantor trust before you move forward.

Grantor trusts are disregarded entities for federal income tax purposes with all income and expenses being reported on the individual's tax return (i.e., your father's tax return).

Do you have an EIN for the trust (does the trust have its own tax ID number)?

[Gamze]

I've been calling Intuit customer service line all day and there is something wrong with it.  

[Gamze]

Hello, yes there is a EIN number.

[Gamze]

I looked at that directory and the person on there has a link.  It doesn't work.  I wouldn't mind doing a video call but not sure how.  I'd even pay someone but can't find anyone.  I did it with the help of a fellow who sold me a membership to his financial club.  It was supposed to be a lifetime membership but when last April came around, he was on vacation and told me to file an extention.  I did.  Now, in October he wants $200/hour to help me again.  No membership I guess :(

[tagteam]

---

@Gamze wrote:

I've been calling Intuit customer service line all day and there is something wrong with it.  

---

Customer Service won't be able to help you since Intuit does not offer a service for the preparation of Form 1041 for a trust.

You can try the Business software (link below) but note that you need to install and run the software in a Windows environment on a computer.

See https://turbotax.intuit.com/small-business-taxes/cd-download

[tagteam]

---

@Gamze wrote:

I looked at that directory and there was no one on there in Seattle area. 

---

I found at least a dozen within 25 miles of downtown.

I checked "Tax Preparation" and "Estates, Gifts, Trusts".

[Gamze]

I already bought the Business turbotax for Trusts.  I just got confused at some point.  I thought there was a way to do your taxes alongside turbotax live help.  They take over your computer I think?  

[Gamze]

I called several today and none of the want to help with turbotax return.  They just want to do a return.  I have already done the return, felt unsure, filed an extension and thought October 15th was deadline.  Found out today that I'm late. I did send a bunch of money at extension so maybe my dad won't get in trouble.  I'm so frustrated.

[tagteam]

---

@Gamze wrote:

...I thought there was a way to do your taxes alongside turbotax live help.

---

No, that's just for individual income tax returns (1040) and then S corporations (1120-S) and Partnerships 1065) for the Business edition; they do not provide a similar service for estates and trusts (1041).

[tagteam]

Here are a few other questions:

Is this the first year the trust came into existence?

If the trust filed 1041s in prior years, who prepared those returns?

If the trust is as simple as you indicated in your original question, where are you having issues? What is the source of your confusion? If the trust's corpus consists only of a primary, personal residence, and a small savins account, then the only income the trust is receiving should be interest from the savings account.

Again, are you sure this is not a grantor trust?

[Gamze]

I apologize for the delay.  I had to refresh my page to see that you replied.  

[Gamze]

No, it has existed for several years.

It was done by a CPA for my dad and I found out that his fee was equivalent to almost 2 months of his income for the year so I did it in 2022 with the help of that fellow I mentioned.

I don't know what a grantor trust is but dad's is a revokable trust.  He is the trustee and I think I am once he passes :(

I looked at the returns the CPA had done and there were so so so many pages, charts, schedules that I think I did dad's wrong.  I got scared and stopped.

I went back on Turbotax today to finish and it is looking like I am finished.  I guess maybe it looks like that because I filed an extention?  I don't know.    

In a nutshell he has a paid off house and a savings account he put into the trust.  Last year I was able to get him 4.62% on his savings and he made some interest income.  On December 31st, I paid him from the trust all of the interest amount and filed his SR1040 with a K?

[tagteam]

---

@Gamze wrote:

I don't know what a grantor trust is but dad's is a revokable trust. 

---

That's a grantor trust and the CPA was probably filing a 1041 with the EIN as a grantor trust and issuing your father a grantor information statement.

Basically, all of the income is reported on your father's individual income tax return (1040) as if he received it himself. There was likely no need to get an EIN for the trust and report in the manner the CPA reported it but that's in the past at this point.

Regardless, I'm at a loss to explain "so many pages, charts, schedules" if this is a simple trust (grantor trust at that) with only a home and a savings account.

[Gamze]

Thank you.  I appreciate your time and information.