[Tax Year 2020] I have a Grantor Tax Information Letter for my Trust. It directions data be input in Schedule B and D and others. Can't that within TurboTax. Where is it?

[psycoe81]

The only options I see are for Schedule K-1 or Schedule Q.  I need schedule B and D, as well as inputing data into Page 2, Box F.

[tagteam · Accepted solution]

You can enter that information as if you received a K-1 instead of the GIS that you actually received.

Box 1 on the K-1 (1041) is for interest income which will flow to Schedule B, as will Box 2a for dividends.

Boxes 3 and 4a on the K-1 (1041) are for short-term and long-term capital gain, respectively, which will ultimately wind up on Schedule D.

[Philarenite]

I have both a k-1 and a Grantor Tax Information Letter, but the numbers are different.  Should I add them (Interest + interest, dividends plus dividends, etc.) and enter them with the K-1 information?  Or should I simply enter the lower of the two values?  

[SamS1]

They should be entered separately.  The 1041 K1 is issued if you are the beneficiary of a simple or irrevocable trust.   The amounts on the 1041 K1 represent your share of the income from the trust, based on distributions received.  This should be entered in the K1 entry section of TurboTax.

The Grantor tax information letter should be entered into TurboTax just like a 1099.  The owner of a grantor trust is the owner of the assets of the trust.  Therefore all income and expenses incurred by the trust are reported separately on the Grantor's personal tax return.  So, interest would be entered in the interest area of TurboTax with the Grantor Trust as payor.  Same with dividends in the dividends section and capital gains and losses in the capital gains and loss section of TurboTax.  

[tagteam]

A K-1 is issued (if at all) to a beneficiary of a nongrantor trust.

A GIS (grantor information statement or grantor letter) is issued to the grantor of a grantor trust.

If you have one of each, then enter them separately.

[TaxNovice58]

My Grantor Tax Info Letter tells me exactly where to populate the data...I need Schedule B, D, E as well as two forms (8995 & 4797). I am using the download/desktop version of TT.  Am I able to go directly to the forms and fill them out.  I am having issues trying to fit the contents of the letter into a K-1 form.  Thank you.

[SamS1]

You should not get using the K1 form input.  The Grantor advice letter tax information would be entered exactly as indicated into the forms and lines shown.  You can do this through Forms mode in TurboTax Desktop.  

• Delete the trust 1041 K1 input in step by step by selecting the trash can next to the Trust K1
• Go into Forms mode by selecting "Forms" in the upper right hand of the screen
• There enter the tax information from grantor advice letter into each form indicated
• If you need to add a form to your return, select "Forms" from the top menu then "Open form"
• Select only the Federal form as the information will transfer to Iowa
• If you must enter a source when adding a new form, enter the trust's name.
• You can go back into "Step by Step" mode by selecting in upper right hand of the screen.

[TaxNovice58]

@SamS1 Thank you!  I will try that tonight.  Appreciate your guidance.

[YANK46]

Doesn't exactly let you input the information. i keep having to open mulitple worksheets and the information does not transfer.  Part of the information is for the reit itself and the rest for the liquidating trust.

[PeggyM]

I have the same problem.  My grantor trust tax information letter tells me where it put the information, but I can't open a Form 4797 or a Schedule E without going through worksheets that I have no clue which fields I need to input.

[TaxNovice58]

That was my issue too. I ended up taking everything to an accountant for this year. Pretty bummed. I will update the 2020 tax return in my TurboTax file so that I can do it myself again starting next year.

[lindawalker57]

This did not work for me.  It will not let me enter data into the forms directly - such as form 4797.  

[PeggyM]

I ended up going to a tax accountant.  Not only was he able to do this, but he found that Turbo Tax calculated using more than necessary of my charitable deductions.   I guess I’ll pay to go to him going forward.

[lindawalker57]

Thanks for the reply.  Yes I will go the tax preparer route this year.  Maybe going forward to.  What wsa the fifference in your charitable calculations between TT and the accountant?

[PeggyM]

The tax accountant used about $30,000 less of my charitable deductions, which adds to what can be carried over to next year.