- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest from CD bought w/trust funds. Does trust fund need to file income tax? Form? .
$262 interest is only income for 2018. Supplemental needs trust fund established several years ago for my sister who receives SSDI as her sole source of income.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
"Does trust fund need to file income tax? Form? ."
If the trust was established with your sister's own assets, then chances are that the trust is a grantor trust and, as a disregarded entity, the interest income can be reported on her income tax return.
If the trust has its own taxpayer ID number (EIN), or is otherwise a nongrantor trust, then the trust will file an income tax return on Form 1041 because it has taxable income for the year (defined as gross income less deductions).
See https://www.irs.gov/instructions/i1041#idm140630132225648
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
Hi,
I established a Special Needs Trust for my daughter, transferring $99 to the bank account designated for the trust. There have been no further deposits into the account. Do we need to file a tax return for her trust?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
@Dtabor No. A trust has to earn at least $600 in order to have to file a tax return. At this point the trust has earned zero dollars.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
@RobertB4444 wrote:
@Dtabor No. A trust has to earn at least $600 in order to have to file a tax return.
That is the threshold for estates. For trusts the filing threshold is any taxable income for the tax year or gross income of $600 or more (regardless of taxable income).
See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285943