Unlike a revocable trust, an irrevocable
trust is treated as an entity that
is legally independent of its grantor for tax purposes. Accordingly, trust income is taxable, and the trustee must
file a tax return on behalf of the trust. This is filed on Form 1041 and TurboTax has a business software that will accommodate business returns. TurboTax Business
Tax returns are due when there is income earned by the trust.
Distributions to beneficiaries
of an irrevocable
trust, are taxable to beneficiaries at
ordinary income tax rates.
For more information about the trust
return you can use this link: Instructions for Form 1041.
