Yes, HI Palms information is correct but here is some additional information that may be helpful.
Since the trust is a revocable trust, it is treated as a "grantor trust" for tax purposes, meaning the income and other tax items reported on the K-1 flow directly to the grantor (in this case, you, as the individual) for tax reporting.
For the K-1 form:
- Name and address: The trust’s name (e.g., "Revocable Trust for John Smith") should be listed on the K-1 as the shareholder.
- Tax Identification Number (TIN): Since the trust is a grantor trust, it typically does not have a separate EIN (Employer Identification Number). Instead, your individual Social Security Number (SSN) is used on the trust’s income tax return.
- Distributive share of income and deductions: The K-1 will reflect the trust's share of the S-Corp income, deductions, and other items. this will flow to your individual tax return.
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