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New Member
posted Mar 14, 2023 8:32:37 AM

Re: How do I complete a tax return for an Irrevocable Living Trust?

I set up an irrevocable trust for my daughter. It is not a grantor trust for tax purposes. How do I get correct filing using turbo tax.

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1 Replies
Expert Alumni
Mar 14, 2023 9:51:50 AM

You'll need to file Form 1041 using TurboTax Business software, as the personal versions of TurboTax don't support this form.

 

TurboTax Business is available for Windows on CD or as a download. It's not available for Mac or in our online versions of TurboTax.

After you install TurboTax Business and begin working on your return, you'll be asked which type of return you need to prepare. Select Trust or Estate return (Form 1041) and proceed.

 

An irrevocable trust reports income on Form 1041, the IRS's trust and estate tax return. Even if a trust is a separate taxpayer, it may not have to pay taxes. If it makes distributions to a beneficiary, the trust will take a distribution deduction on its tax return and the beneficiary will receive IRS Schedule K-1.

https://turbotax.intuit.com/small-business-taxes/

 

See additional helpful information in the links below:

 

Estate & Trust

 

Irrevocable Trust

 

@BruceB2 

 

[Edited 3/20/2023 | 11:09AM PST] @BruceB2