The Grantor Tax Advice Letter or Information Sheet is a transmittal document, copied to the IRS, showing you as a recipient of various forms of income, and possibly having certain deductible expenses.
- Enter the information listed in the Grantor Letter in the places where you normally would, had you paid or received these items directly instead of through a trust.
You report each income and expense item as if you had received an equivalent 1099, using the name and EIN of the Trust as the payer. So treat interest as if a 1099-INT, dividends as if a 1099-DIV, Gains and Losses as if a 1099-B, etc.
Some of the more common items and where to add them include the following:
Income Items
Click on Federal Taxes > Wages & Income (In TT Home & Biz: Personal > Personal Income)
- Taxable interest and dividends - Interest and Dividends > Interest on 1099-INT [or Dividends on 1099-DIV]
- Capital gains and losses - Investment Income > Stocks, Mutual Funds, Bonds, Other
Note: After the Tax Cuts and Jobs Act (TCJA) these expenses are no longer deductible on itemized deductions.
@Imhebert5
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