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Cheryl_M
New Member

Reporting 1041 for irrevocable grantor trust on 1040

I received a grantor tax letter for my mother that includes a 1041.  My mother is listed as the grantor on her irrevocable trust.  There is no K-1.  The only line on the 1041 that is filled out is the Portfolio Income: Interest line.  How do I account for this on my mother's 1040/1040SR?  Either on turbo tax or the long way with IRS tax forms.  

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5 Replies

Reporting 1041 for irrevocable grantor trust on 1040

If it is interest, then enter it as if your mother received a 1099-INT.

Cheryl_M
New Member

Reporting 1041 for irrevocable grantor trust on 1040

If I enter it as if it is a 1099-INT, how am I entering the information about the trust (ie: EIN, name, address, etc)?  It doesn't seem correct for me to enter in the step by step as a 1099-INT and if I add it directly through forms, it doesn't give me the option of entering the 1041 information other than the name of the trust and the amount of interest.  Thanks in advance.

Reporting 1041 for irrevocable grantor trust on 1040

that portfolio income on the 1041 should also be on the grantor trust letter.  What you are reporting is not typical of grantor trust reporting. A grantor trust will have wording on the 1st page that it is a grantor trust and will have no income or expense reported on page 1. all income and expenses would be reported in the grantor trust letter.   However, I can offer no assurances the the interest income reported on page 1 of the 1041 is also included the grantor trust letter. 

 

 

these are IRS instructions

If the entire trust is a grantor trust, you’ll need to fill in only the entity information on Form 1041. Avoid showing any dollar amounts directly on the form itself; instead, include dollar amounts only on an attachment to the form. Additionally, do not use Schedule K-1 (Form 1041) as the attachment.

Reporting 1041 for irrevocable grantor trust on 1040

What @Mike9241 wrote is accurate; the actual 1041 should be blank.

 

Contact whoever prepared the 1041.

Cheryl_M
New Member

Reporting 1041 for irrevocable grantor trust on 1040

Thank you.  I did.  They told me to hire a CPA.   I have reached out to a tax paralegal at eldercare law office.  Sigh.

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