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posted Jun 6, 2019 6:50:56 AM

My father died in 2016 with a revocable living trust - I have an EIN for the trust - total income of trust in 2016 is less than $100 - do I have to file a 1041 for 2016?

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Level 15
Jun 6, 2019 6:50:58 AM

"do I have to file a 1041 for 2016?"

Technically you do not since the trust's income is below the filing threshold. 

See https://www.irs.gov/instructions/i1041/ch01.html#d0e378

It is, however, a good practice to file even if not required for the purposes of continuity and also to make the beneficiary(ies) aware that they do not have any tax liability for the tax year as a result of their status.

3 Replies
Level 15
Jun 6, 2019 6:50:58 AM

"do I have to file a 1041 for 2016?"

Technically you do not since the trust's income is below the filing threshold. 

See https://www.irs.gov/instructions/i1041/ch01.html#d0e378

It is, however, a good practice to file even if not required for the purposes of continuity and also to make the beneficiary(ies) aware that they do not have any tax liability for the tax year as a result of their status.

Level 2
Mar 19, 2021 9:44:30 AM

 
Thank you tagteam, I have a similar situation insofar as the 2020 Trust interest income is less than $100, under the Trust EIN, with myself (the son of the decedent) as the Trustee.  Your response was very helpful confirming that a Trust return does not need to be filed.  One follow-up question, do I as the Trustee have to report the interest income on my own 1040, since I am the beneficiary of the Trust and control the Trust bank account?

Level 15
Mar 19, 2021 10:36:34 AM

@Yakman If you are the beneficiary and the trust is distributing all income through to you, as beneficiary, then you should file a 1041 and issue yourself a K-1. The exemption is utilized if the trust is retaining the income.