As trustee, I paid wages to an Aide for my disabled son from his First Party (self-settled) Special Needs Trust. As this is a household employee, I need to file a Schedule H and pay federal payroll taxes, also from the Trust. Because this is a "Grantor-type" trust, per 1041 Instructions, my son's income is reported on his 1040 and I file an informational 1041 along with a Grantor Trust Information Letter detailing income/expenses. Per questions I asked last year, I was told that Schedule H needs to be filed with the Informational Form 1041, since it is the trust, not my son, that is paying the wages (see Link to Question on Community.)
My question is this: Should I enter the Household employment tax amount on 1041 Schedule G, Part I, line 7 and carry it forward to line 24 "Total Tax" on form 1041? Or should I leave these amounts blank and just attach the Schedule H with a payment voucher and check for the payroll taxes due? Per the IRS 1041 instructions for Grantor Type Trusts, "If the entire trust is a grantor trust, fill in only the entity information of Form 1041. Don't show any dollar amounts on the form itself; show dollar amounts only on an attachment to the form." Based on those instructions, it sounds like I shouldn't even fill in amounts for Household employment taxes.
