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

Forum|Forum|2 years ago
February 12, 2024
2 replies
0 views

When I created my revocable trust in 2023, our lawyer got an EIN for it at the same time. A couple weeks later I got a letter from the IRS with the EIN, and a statement saying I would need to file a 1041. The trust has earned some small amount of interest (<$100), but I thought the1041 is filed only after the grantor dies, and the grantor is me, still alive at this writing. Do I still need to file the 1041 for 2023 if no one died?

Not A Product Question

Best answer by Anonymous_

Great. So I did in fact change my bank savings accounts into trust accounts with the EIN and the 1099s I received did have that EIN on them so it looks like I do indeed need to file the 1041 just showing that meager interest (<$100), compute the tax, and then use the Grantor Information Statement. So can you please explain just what that information statement is and how is it used? Using a Google search I see many different forms of this document. Can you point me to what it should look like? Thanks!

No text available

Anonymous_

Employee

You have filing options with a grantor trust.

See https://www.irs.gov/instructions/i1041#en_US_2023_publink1000286018

NCwillowAuthor

Thanks, but I read that IRS doc already and that does not clear it up, or more likely I just can't make sense of it. I am not asking which option to use, I am asking whether I need to file a 1041 at all.

DianeW777

No, you are not required to file Form 1041 until the trust has earned at least $600 taxable income. For more information see 'Who Must File' below.

Who Must File: 2023 Instructions for Form 1041

Decedent's Estate:

The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has:

1. Gross income for the tax year of $600 or more;

2. A beneficiary who is a nonresident alien; or

3. If you held a qualified investment in a qualified opportunity fund (QOF) at any time during the year, you must file your return with Form 8997 attached. See the Form 8997 instructions.

@NCwillow

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

NCwillowAuthor

That’s where I get confused. The IRS instructions say:

“The fiduciary (or one of the joint fiduciaries) must file Form

1041 for a domestic trust taxable under section 641 that has:

1. Any taxable income for the tax year;

2. Gross income of $600 or more (regardless of taxable

income)”

So, my trust received some interest in 2023 (<$100), so, by item 1, I have taxable income and therefore need to file 1041. But by item 2, the interest is less than $600, so I don’t need to file 1041. Can you clear that up at all? Thanks.