My Revocable Trust has an EIN, do I need to file 1041 if grantor (me) is still alive?

[jtax]

Yes. That is what you should do.

For your (the grantor's) 1040 enter each 1099 as you would manually enter any other 1099 of the same kind. You can list the payor as the trust name and if you want include "grantor statement" but I don't think anyone is likely to be looking at that detail.

File a blank 1041 except for filling in Boxes A-F and signature & date. Include a grantor statement. You can't use the regular TT for this, though you can use TT Business (not Home & Business) if you purchase that.

Attached is a blank example of a grantor statement. There is no special form. It can be any form that meets the 1041 instructions. See page 13-14 of https://www.irs.gov/pub/irs-pdf/i1041.pdf, which says:

Attachment. On the attachment, show:
• The name, identifying number, and address of the
person(s) to whom the income is taxable;
• The income of the trust that is taxable to the grantor or
another person under sections 671 through 678—report the
income in the same detail as it would be reported on the
grantor's return had it been received directly by the grantor;
and
• Any deductions, credits, or elections that apply to this
income. Report these deductions and credits in the same
detail as they would be reported on the grantor's return had
they been received directly by the grantor.

[jtax]

I will just emphasize that you can only do this for a 100% grantor trust. You must be certain that you do not have a non-grantor trusts. Revocable trusts are grantor trusts. Some irrevocable trusts are grantor trusts (in whole or part) but that is very complicated.

[brs67]

Thank you so much. PDF doc is very helpful.

[brs67]

This is very helpful. Mine is a plain revocable grantor trust that I got from my lawyer in 2023. As my lawyer asked me to get EIN, I applied and I got the letter from IRS that I need to file 1041 before April 15 '24. Also, I closed my brokerage account that has my EIN this year and I will not get any 1099 with my EIN next year. Can I file this 1041 as a final form?

[PatriciaV]

If you closed the brokerage account with the EIN after 12/31/2023, you would file the final Form 1041 next year (2024). 

@brs67 

[jtax]

I used to worry about when to mark returns as "final" but I now think that all the "final" box does is tell the IRS not to poke you about filing or perhaps not send you 1041-ES if you were once making estimated trust payments. If you get a 1099 in a year after a "final" return, I can't image the IRS won't come after you. Even if you check final, I have read of people filing another return (after the year marked "final") in later years when a 1099 or other time of income unexpectedly appears. They report no problems doing so.

The only wrinkle does not apply to a 100% grantor trust. Rather for a non-grantor trust certain deductions are passed out to the beneficiaries only in the final year. So for a non-grantor trust with such deductions (not all trusts have them) it might be problematic to have to file again in a subsequent year. I.e. would the trust (and beneficiaries) need to amend the final year and move those deductions forward? That would be a mess.