topic Re: Irrevocable Trust in Get your taxes done using TurboTax

Irrevocable Trust

pdquin52 — Thu, 31 Dec 2020 15:35:52 GMT

My wife and I put our house in a irrevocable trust this year. I have used Turbo tax for self-employed for years to do my return. I am still working and there are no investments in the trust. Do I have to file a 1040 along with the 1041 ?

Re: Irrevocable Trust

Anonymous_ — Thu, 31 Dec 2020 15:45:56 GMT

@pdquin52 wrote:

....there are no investments in the trust. Do I have to file a 1040 along with the 1041 ?

Probably not since it is most likely still a grantor trust and you did not apply for (and have) an EIN.

See https://www.irs.gov/instructions/i1041#idm140366310230464

There is also an income threshold before a trust is required to file a 1041.

See https://www.irs.gov/instructions/i1041#idm140366311406240

Re: Irrevocable Trust

pdquin52 — Thu, 31 Dec 2020 15:56:37 GMT

I did apply for an EIN as per my lawyer

Re: Irrevocable Trust

Anonymous_ — Thu, 31 Dec 2020 16:06:19 GMT

You can likely still use the optional method as outlined in the IRS publication (see the first link in my previous post) and you do not have to file at all if the threshold is not met (see the second link).