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Level 1

1041 irrevocable grantor trust interest income of $10.63

Have an irrevocable grantor trust.  The life insurance company sent a 1099int for $10.63.  Is there a need to file if the total taxable income is less than $100?  Would it be good practice to file even if there is no tax?

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Level 15

1041 irrevocable grantor trust interest income of $10.63


@33mon wrote:

Would it be good practice to file even if there is no tax?


Yes, it would be considered good practice to file (regardless of whether or not a return is required).

View solution in original post

Level 15

1041 irrevocable grantor trust interest income of $10.63

I am not certain with respect to the stimulus question, but you can type "Schedule K-1" into the search box which should bring up a "Jump to..." link. Click on that link and select Estates or Trusts (Form 1041).

View solution in original post

16 Replies
Level 15

1041 irrevocable grantor trust interest income of $10.63


@33mon wrote:

Would it be good practice to file even if there is no tax?


Yes, it would be considered good practice to file (regardless of whether or not a return is required).

View solution in original post

Level 1

1041 irrevocable grantor trust interest income of $10.63

thanks

Returning Member

1041 irrevocable grantor trust interest income of $10.63

How do I report interest of a Grantor Trust on my 2019 tax form ?

Level 15

1041 irrevocable grantor trust interest income of $10.63


@jrlehmkuhl wrote:

How do I report interest of a Grantor Trust on my 2019 tax form ?


You would report the interest as interest income from the grantor trust directly on your individual income tax return (1040).

 

If you are preparing a 1041 for the grantor trust, then the trust should generate and issue a Grantor Information Statement (GIS) and the interest will be reported on the GIS. You will then proceed to enter the interest income from the GIS on your 1040.

Level 1

1041 irrevocable grantor trust interest income of $10.63

The 1099 from the insurance company used the EIN number of the Grantor Trust.  So is there an exemption amount for the grantor trust or do you have to file a 1041 for the $10.41 interest?

Level 15

1041 irrevocable grantor trust interest income of $10.63

Optional methods #2 and #3 are delineated in the IRS instructions at the link below.

 

https://www.irs.gov/instructions/i1041#idm140366310222736

Level 2

1041 irrevocable grantor trust interest income of $10.63

I received a 2020 Grantor Trust Tax Statement.  This indicates a Gross Taxable Interest, Ordinary Dividends and a Capitol Gains  Distribution.  How do I report these?  Thank you.

Level 15

1041 irrevocable grantor trust interest income of $10.63


@Dfleishman wrote:

I received a 2020 Grantor Trust Tax Statement.  This indicates a Gross Taxable Interest, Ordinary Dividends and a Capitol Gains  Distribution.  How do I report these? 


You can report these income items in the appropriate sections of TurboTax individually, or you can pretend you received a K-1 (1041) and enter the items using that method. 

Level 2

1041 irrevocable grantor trust interest income of $10.63

Thank You!

Level 2

1041 irrevocable grantor trust interest income of $10.63

I'm still not sure how to handle the GROSS Taxable Interest, Ordinary Dividends and Capital Gains Distributions from my 2020 Grantor Trust Tax Information Statement.  Also, I entered the wrong amount for my Stimulus payment.  I already completed the Federal Section.  How do I go back and revise this figure?

Level 15

1041 irrevocable grantor trust interest income of $10.63

@Dfleishman 

 

There are specific sections of the program to enter investment income, such as interest and dividends (and also capital gains distributions).

 

Which version of TurboTax are you using? If you would like to enter the figures as if you had received a K-1 and are using an online version of TurboTax, you would need to be using at least TurboTax Premier.

Level 2

1041 irrevocable grantor trust interest income of $10.63

I'm using the Premier Version.  Is there a step-by-step method?  Also, how do I return to the Stimulus Questions.  I first entered the wrong amount and wish to correct.

Level 15

1041 irrevocable grantor trust interest income of $10.63

I am not certain with respect to the stimulus question, but you can type "Schedule K-1" into the search box which should bring up a "Jump to..." link. Click on that link and select Estates or Trusts (Form 1041).

View solution in original post

Employee Tax Expert

1041 irrevocable grantor trust interest income of $10.63

Yes, you can use the information here to enter a 1041 K-1.  

 

To enter your form K-1 in TurboTax, open your return and follow these steps:

  • Click on Federal Taxes, then on Wages and Income
  • Under All Income, scroll to S-corps, Partnerships, and Trusts section
  • Click Show more and click Start next to Schedules K-1, Q 
  • Continue to enter the requested information and select Boxes 1-5 for your entry (see attached image)

The stimulus questions will fall under the 'Federal Review' tab at the top once you are signed into your TurboTax Account. This is where the figures can be corrected.

 

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