1041 for grantor trust gives me error- I entered K-1 information for trust but it just asks income to report, etc.but this makes no sense. Please help

[kathleen4]

I'm filling out 1041 but but it automatically flows the K-1 information for trust to the 1041? but it shouldn't . Looks like I have to just fill out grantor worksheet and not enter in K-1 information. Is that correct? Much easier if I could fill out K-1's and that populate the work sheet. This is very confusing.

[IreneS · Accepted solution]

Correct.  For a grantor trust, you should not create a a K-1.  Instead you should just create a "Grantor Letter," which gives you the amounts and where to put them.

Fill out the Grantor Worksheet and follow the onscreen instructions.

[kathleen4]

THANK YOU! THERE SHOULD BE AN EASIER WAY TO ENTER THIS. SUCH A PAIN TO ENTER ALL TH K-1 INFO IN AN EXCEL FILE AND THEN FILL OUT THE WORKSHEET. SHOULD BE AN EASIER WAY TO DO THIS.

[vstar58]

I have a similar question.  So I checked Grantor trust so that income is reported on Grantor's tax return.  A K1 breaks down the income types but since you are saying you enter "the amounts" on the grantor worksheet, which amounts do you use, all the detail or can the grantor just report the taxable income?  Seems like the grantor would need K1 level detail and why wouldn't this program populate this data?  If all the income goes to the Grantor, how to you -0- out the income for the trust?