Can TurboTax prepare a return for a Revocable Trust? The trust includes numerous investment vehicles including stocks, IRA's, professionally managed accounts etc.
1. The trust is set-up with the intention of flowing tax liabilities to a personal return. How would the Trust return be linked to a personal return?
2. Is it possible for the Trust to have tax liabilities as an entity that cannot flow to a personal return? Note this Trust direct-liability has happened in the past when prepared by a (now retired) CPA, but I did not understand the explanation provided to me nor do I believe it necessarily accurate.
3. Can I use TurboTax to prepare this revocable trust return as the designated Trustee?
4. Can I use TurboTax to prepare the personal return as the designated Power-of-Attorney?
Revocable trusts are grantor trusts (the grantor is treated as the owner of the trust assets).
As a result, the grantor generally reports all of the income and gain derived from the trust's assets on Form 1040.
There are other (optional) methods of reporting.
See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000286018
Under no circumstances, however, would the grantor be issued a K-1 (1041).