Hello, I am doing a relative's taxes. She has dementia and is in a memory care facility. My Wife is POA and Trustee (I am Successor Trustee). I filed the relative's Federal and PA returns today. The Trust is entitled a 'Grantor Trust' 'Irrevocable Trust Agreement' which has an assigned EIN. The Trust 1099-INTs have the Recipient's TIN = Trust EIN. My interpretation is that I should use Optional Method 2 which says the Trustee can report the 1099s to the IRS, but the instructions don't say how - and - the instructions say that the Grantor still has to include the Interest on their personal Returns. I am not sure what benefit it is to have the Trustee somehow report the 1099's to the IRS if the Grantor's personal return has to be amended to include the Interest anyway - just report the 1099's in the amended personal return. So, I am back to square one. I was hoping to file separate returns, including the 1099-INT Interest, using the Trust EIN. Please clarify what I need to do. Thanks.
