With a grantor trust, there are two ways to go. The trust owns the assets. However, the holder, such as a brokerage, is given your SSN (not the trust ein) and issues the tax reporting form using your SSN; no 1041 is required. If they are issued using the trust EIN, a 1041 is required, and it produces a grantor trust letter.
There are two thoughts on reporting a grantor trust letter in an individual's 1040. 1) Complete the k-1 for the trust. 2) ignore the k-1, and enter on the same forms that the items would be entered on if no trust existed
Of course, the best solution would be for TurboTax to creatoe K-1 for grantor trust reporting. .
