As trustee, I paid wages to an Aide for my disabled son from his First Party (self-settled) Special Needs Trust. As this is a household employee, I need to file a Schedule H and pay federal payroll taxes, also from the Trust. Because this is a "Grantor-type" trust, per 1041 Instructions, my son's income is reported on his 1040 and I file an informational 1041 along with a Grantor Trust Information Letter detailing income/expenses. Per questions I asked last year, I was told that Schedule H needs to be filed with the Informational Form 1041, since it is the trust, not my son, that is paying the wages (see my previous question.)
My question is this: Should I enter the Household employment tax amount on 1041 Schedule G, Part I, line 7 and carry it forward to line 24 "Total Tax" on form 1041? Or should I leave these amounts blank and just attach the Schedule H with a payment voucher and check for the payroll taxes due? Per the IRS 1041 instructions for Grantor Type Trusts, "If the entire trust is a grantor trust, fill in only the entity information of Form 1041. Don't show any dollar amounts on the form itself; show dollar amounts only on an attachment to the form." Based on those instructions, it sounds like I shouldn't even fill in amounts for Household employment taxes.
