topic 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? . in Business & farm

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? .

eaglephant — Sat, 01 Jun 2019 20:00:30 GMT

$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.

"Does trust fund need to file income tax? Form? ." If th...

Anonymous_ — Mon, 11 Apr 2022 21:59:14 GMT

"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

Re: "Does trust fund need to file income tax? Form? ." If th...

Dtabor — Mon, 11 Apr 2022 21:50:50 GMT

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?

Re: As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest f...

RobertB4444 — Mon, 11 Apr 2022 23:16:40 GMT

@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.

Re: As trustee for supplemental needs trust fund, fund received Form 1099-INT for $262 interest f...

Anonymous_ — Mon, 11 Apr 2022 23:29:17 GMT

@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