Revocable Trust with S Bond and Cash less than 600

[samkr]

I have revocable trust for my child.  Trust has cash less than 600 dollars and Savings Bond bought in the name of the trust for 10k.  There is no interest income from Savings Bond or other income.  Do I need to file Taxes for Trust Account?  I use Turbo Tax Business

[Anonymous_ · Accepted solution]

If it is a revocable trust, it is a disregarded entity for federal income tax purposes and, as such, it is the same as if the income were the child's income.

[samkr]

Thank you so much for the answer..  Is my understanding that when Income is more than 600 need to file taxes - until then there is no filing requirement, is correct?

[Anonymous_]

Why $600? Are you referring to a 1041 (for an estate, there is a $600 exemption)?

[samkr]

idk - That is the input from my Attorney.  When income in the trust is > 600 then file tax return for Trust and that should flow over K1 to the Grantor ( i am the Grantor for the trust).  I may be totally off - can you please explain or point me to information around this?

[Anonymous_ · Accepted solution]

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285943

The trust is required to file a return (1041) if it has any taxable income or gross income of $600 or more.

[samkr]

Thank you so much