My wife and I file jointly. How should we handle income from assets held in a revocable trust with a different TIN?

[GeoffreyG · Accepted solution]

Unless your trust is a Grantor type Trust (in which case it is effectively ignored for income tax purposes, except for having to file an annual no-tax-due disclosure on Form 1041), or a Living Trust (specifically one where the donor to the trust is still alive), then you should receive a document known as a Schedule K-1 (for trusts) that will report your taxable income from the trust . . . at least the income that is taxable on your personal return.  It is that Schedule K-1 that you would use for your personal income tax reporting.

A trust itself will normally have a separate tax filing requirement(s), and this obligation is normally taken care of by the trust's trustees, with the help of a professional accountant or lawyer.  If you have such a trust in existence, and are the trust's trustee or trustees, but don't yet have an accountant or lawyer helping you, then it is recommended that you obtain such professional assistance as soon as reasonably possible.  The complete tax filing requirements and obligations for a trust are well beyond the scope of what we can offer here on the TurboTax AnswerXchange.

That said, assuming that a trust's income tax reporting is done correctly (and the trust is not a Grantor type Trust), then entering your Schedule K-1 (i.e., the tax document generated by the trust and distributed to the trust's beneficiaries) tax information into TurboTax is relatively straightforward.  In fact, we even have a FAQ webpage that describes for you how to get started:

https://ttlc.intuit.com/questions/1900938-where-do-i-enter-a-k-1-that-i-received

If you have additional questions about Schedule K-1 for trusts, trust income and taxes as a topic, if or just want to speak with a live tax expert who can walk you through entering a Schedule K-1 in TurboTax (including the ability to screen-share with your computer), then please feel free to contact us.  We would be happy to help you (and as a TurboTax Deluxe customer, the call is free to you).  Here is a link where you can create a support ticket and reach us:

https://support.turbotax.intuit.com/contact/

Thank you for using the TurboTax AnswerXchange.

[jtax]

[Edited]

Just FYI a trust being a living trust is not relevant to income tax returns. What matters is whether the trust is a grantor or non-grantor trust. (Could be part of each actually). Living trusts could be either. Even testamentary trusts could be either depending upon what powers the beneficiaries have.

So the issue is not just the separate TIN, but the grantor/non-grantor status. If it is non-grantor you will will get a k-1. If grantor you should get a "grantor statement" if you have a professional (or on the ball private) trustee.  If partial grantor/non-grantor you will get both grantor statement/k1.

[See below for the special case in which you might not a k1 or a grantor statement.]

If the trustee isn't helpful (or if you are the trustee) take a look at the 1041 "special reporting instructors" for "Grantor Type Trusts" and "Optional Filing Methods for Certain Grantor Type Trust] on page 13 of https://www.irs.gov/pub/irs-pdf/i1041.pdf for how you and how the trust should deal with reporting the income.