Filing a State Business Income Tax Return in Texas for a complex trust

[tinaincrowley]

This beneficiary living trust was established in 1997.  The grantor is now deceased and the trust is now a complex trust.  I have paid a tax attorney to do the trust's taxes for many years.  I, the trustee, am filing the 1041 myself using Business TurboTax this year.  I am ready to file but TurboTax is stating that "This year, you are required to file a State Business Income Tax Return in Texas."  This site sent me to another question similar and said that return is for franchise taxes.  Over all these years my tax attorney has not filed franchise taxes on this trust.  So I am assuming that I don't need to file franchise taxes.  I did read if it is a grantor trust, this filing is not required.  I believe it started as a grantor trust because the grantor had control of the trust until he died but it is now marked as a complex trust.  Am I required to file the franchise tax in May in TX?

[MaryK4]

You are correct that you would not be required to file the Texas franchise tax for a grantor trust.  See Franchise Tax Overview. 

You can delete the Texas return in TurboTax Business,