Mother in laws grantor trust only had $100 of income this year and I was told I didnt have to file Federal form 1041. Do I have to file State of Oklahoma return?

[john14verse6]

State of Oklahoma instructions on Fiduciary tax return filing are confusing......the instructions say this:

REQUIREMENTS FOR FILING
"Every resident estate or trust shall make a return for each taxable year stating the taxable income and the adjustments provided in 68 OS Sec. 2351 et seq. to arrive at Oklahoma taxable income. Every nonresident estate or trust having Oklahoma taxable income as provided in 68 OS Sec. 2362 (Rents and Royalties, Business, Partnership and Sub-Chapter S Corporation Income and Sales of Oklahoma Real Property) shall make a return for each taxable year stating the taxable income and the adjustments provided in 68 OS Sec. 2351 et seq. to arrive at Oklahoma taxable income. See Form 513-NR and instructions."

This says "every resident trust shall make a return....."

But later on they say this:

GRANTOR TRUST
"A grantor trust will be treated the same on the Oklahoma return as it is on the federal return. If the federal return (Form 1041) is required to be filed, the Oklahoma return is likewise required. Complete the heading on the Form 513 and provide a schedule of income and deductions indicating the Oklahoma income, including any pass-through withholding. Include on the schedule the name, address, and SSN of the grantor. Form 513, Part 2, may be used for the grantor information."

That makes it sound like that since the federal return is not required that the state return is also not required.

What do I do?

[PatriciaV · Accepted solution]

If the trust/estate has no taxable income, no Oklahoma state return is required. The key phrase is "taxable income."

[john14verse6]

Thank you for your response ! I am new to a lot of this and I tend to overcomplicate things.  I appreciate you answering my question !!