I have a client who in prior years received a K-1 from a partnership in which is was listed as a general member. Accordingly, there was always self-employment tax reported on the K-1. So far, so good.

Now, this year (2021), he sent me the same K-1 as he always has in the past but now it shows that his revocable trust owns the partnership interest (and not him as an individual). Because trusts are not subject to self-employment tax, there is no amount reported on line 14A (Self-Employment Tax).

Since his trust is a revocable (grantor) trust, no Form 1041 was filed and I am picking up the income on my client's 1040 I am also reporting self-employment tax on Sched SE because I'm pretty sure he would still owe S/E tax on that income. Did I handle that correctly?

Wonder if I also need to file a trust return in this case?

Thanks for any feedback.