I am the sole grantor of the revocable living trust, although I am married. This trust protects assets I inherited. The trust has its own separate TIN from me. It was created in 2018, so this will be its first return. Can I pass the income through to me without filing a 1041? Or will the trust need to file a return with a K-1 to me? Or can the trust send me a 1099?
if any income was received that used the TIN of the trust you must file form 1041. you indicate it is a grantor trust. no k-1 is produced. as a grantor trust all income and deductions flow through to you as if the trust did not exist. what you get is a grantor trust letter that details income and deductions which must be entered in the 1040 but not using the k-1 for trust see the link
https://ttlc.intuit.com/questions/3325719-how-do-i-enter-information-from-a-grantor-letter
by the way the grantor trust return for 2018 is now late. it was due 4/15/2019. it must have the same tax year as you.
turbo tax for individuals doesn't do 1041's, you need TurboTax Business
if any income was received that used the TIN of the trust you must file form 1041. you indicate it is a grantor trust. no k-1 is produced. as a grantor trust all income and deductions flow through to you as if the trust did not exist. what you get is a grantor trust letter that details income and deductions which must be entered in the 1040 but not using the k-1 for trust see the link
https://ttlc.intuit.com/questions/3325719-how-do-i-enter-information-from-a-grantor-letter
by the way the grantor trust return for 2018 is now late. it was due 4/15/2019. it must have the same tax year as you.
turbo tax for individuals doesn't do 1041's, you need TurboTax Business
"Do I need to file a seperate 1041? "
You can most likely use an optional method of filing that does not involve filing a 1041. If you gave payers of income (e.g., brokerage firms, banks) the TIN of the trust, you can file 1099s to report the income/gross proceeds paid to
the trust showing the trust as the payer and you as the payee.
See https://www.irs.gov/instructions/i1041#idm140630131825216
Alternatively, you could essentially close your account (link below) and use your SSN since the grantor trust is a disregarded entity for federal income tax purposes. In that event, payers of income would issue tax reporting statements with your SSN and you would simply report the income/proceeds on your individual income tax return.
See https://www.irs.gov/businesses/small-businesses-self-employed/canceling-an-ein-closing-your-account
The foregoing notwithstanding, you should consider ongoing tax (and legal) advice from professionals who are familiar with estate planning/asset protection and income taxation of estates and trusts.