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New Member
posted Apr 15, 2024 12:05:19 PM

Filing taxes for a trust account that only gained interest in a money market account.

I am filing taxes for a trust account that was created last year for the first time. and I want to make sure I am doing it the right way. I am not sure which category I should be selecting to do this

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2 Replies
Expert Alumni
Apr 15, 2024 12:55:26 PM

First you should make sure the interest is high enough to require the estate return to be filed.

  • $600 or more of taxable income and a trust return is required to be filed.
  • Interest is entered on Line 1

Level 15
Apr 16, 2024 6:32:52 AM

A trust is required to file a 1041 if it has any taxable income or income of $600 or more regardless of taxable income.

 

See Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (2023) | Internal Revenue Service (irs.gov)

 

Grantor trusts have several filing options.

 

See Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (2023) | Internal Revenue Service (irs.gov)