topic Does a trust have to file form 1041if it earned $92 of interest? in Business & farm

Does a trust have to file form 1041if it earned $92 of interest?

whiteroses19 — Wed, 05 Feb 2020 18:20:17 GMT

Re: Does a trust have to file form 1041if it earned $92 of interest?

Anonymous_ — Wed, 05 Feb 2020 19:31:36 GMT

Technically, that amount would be absorbed by the trust's exemption (either $100 or $300).

See https://www.irs.gov/instructions/i1041#idm140630132225648

Regardless, you should file a return for the sake of continuity and the IRS may be looking to match a return to a tax reporting statement (e.g., 1099-INT).

Re: Does a trust have to file form 1041if it earned $92 of interest?

DavidD66 — Wed, 05 Feb 2020 19:47:47 GMT

Estates and trusts are allowed an exemption amount. The value of the exemption depends on the type of trust:

Complex Trust - $100

Simple Trust - $300

Decedent’s Estate - $600

So no, if the only income is $92 a Form 1041 does not need to be filed, unless the Trust has a beneficiary who is a nonresident alien, in which case a return must be filed.