I have to claim gross taxable income from a prepaid funeral trust.where do I list the interest

[DianeW · Accepted solution]

The interest income from this account can be entered by using the steps shown below.

You can go directly to the area to enter the document by following these steps.

1. Sign into your TurboTax online account and select your current return.

2. Select  My Account on the top right and then select Tools

3. Select Topic Search (see attached image)

4. Search for 1099int and select Go (see attached image)

5. Follow the interview to enter your document.

The following steps can be used in your TurboTax desktop account.

1. In the search box, upper right

2. Search for 1099int

3. Jump to 1099int (use the images attached for assistance)

[keithwerner42]

I get a Grantor Trust Tax Information Statement from a Funeral Trust Account which contains Interest, Dividends and Capital Gains Distributions as well as Fiduciary Fees Paid but no 1099INT, DIV, etc. forms.

Can a FEDERAL E.I.N holder such as 37-6525314 get away with just a STATEMENT and no IRS FORMS?

Where does one find how to put all the $ in the correct places?

[synet165]

This is not a form 1099 int, but a form saying interest was paid on prepaid funeral plan. Could this be schedule K?

[JohnW152]

If this were a K-1, it would most likely identify itself as such.

Taxable interest includes interest that's been received from bank accounts, loans made by the taxpayer to another person, and other sources. 

Interest received for prepaid funeral costs should be entered as if you received a Form 1099-INT.

With TurboTax Online open, 

1. Click the Pick up where you left off button, if it’s present
2. Let the whole page load
3. Click the Search box at the top of the screen
4. Type form 1099-int in the search box
5. Click Jump to form 1099-int
6. Enter the information yourself in the interview process.

[randy2]

we never get a K-1 from the banks here in Maine for Grantor type Trust, pre-need funeral trust, we just get a "Supplementary Schedule" and it has two numbers on it.....Ordinary Interest, and Fees.....Is there a way to deduct the trust fees from the interest income?

[JosephS1]

No, unfortunately.  The interest is fully taxable but the trust fees, or trustee fees, are what used to be considered an "other itemized deduction" and are no longer deductible.  My suggestion is to keep a record of all trust fees charged over the period of the trust and when the trust is dissolved, if there is a gain attached to the dissolution, add the trust fees not deducted to your basis as a beneficiary through a basis adjustment on Schedule D or whatever other form may be involved.

@randy2 

[Mary2of5]

Mom received a Grantor Trust Tax Info Stmt (substitute K-1) form from her MA pre-paid irrevocable funeral trust that she set up in 2022.

It lists Taxable Interest and Fiduciary fees paid. 

I usually file Form 1040 for mom.

Where do I enter these on my Turbo Tax ?

Do I have to file a different form?

Is there a place to subtract fees from the interest?

[Vanessa A]

You will still file a 1040 form.  But, the interest will be reported on Schedule B which will attach to her 1040.  You can enter this by selecting the following:

• Federal
• Income
• Show More next to Interest and Dividends
• Start next to Interest on 1099-INT
• Enter your 1099-INT as it appears. 
• Click the My form has info in more than just box 1 for box 5 to show up where you can enter the expenses. 

[Mary2of5]

Thanks.

I entered the taxable interest and the fees as you suggested.  However, I see that the fees were not deducted.

Did I miss something for MA?

Thanks,

[AbrahamT]

As JosephS1 explained earlier, the fees would only come off as a deduction from the cost basis if there was any form of gain associated with this funeral trust. Generally, you would typically have this situation when you receive a 1099B. In your case, it seems like you received a K-1. As such all the information would be entered in the K-1 input. Any gain entered in Box 3 or Box 4 would flow through to the Sch D as a "net" amount (not showing gross sales and cost basis seperately. like this

   

As such, because fees are no longer accepted as an itemized deduction which would typically appear on a Sch A(assuming that you are itemizing). Consequently, the fees will not be deducted.

[Mary2of5]

Thank you.