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I have a client who has a Separate Share Trust from his deceased mother that earned $100 in interest last year. That is the only income reported for this trust for 2020. Does a 1041 need to be filed or can he report the $100 directly on his Schedule B. I don't have unlimited 1041's feature and it seems kind of wasteful to pay over $100 to complete a 1041 in Proseries, especially trying to explain to the client why I have to charge him this kind of fee to cover my costs.
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Read the 1041 instructions for Who Must File.
The more I know the more I don’t know.
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Thanks, it says "any" taxable income so that would mean one would need to be filed. I guess I will try to figure a way around paying the $100 charge to Proseries to file it. Thanks.
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It had no expenses?
Went to the barber yesterday for my first haircut since December. He was telling me about how his college-graduate stepson had to call AAA to change a flat tire. I told him there are some tax preparers who can't use pen and ink to fill out a simple return in five minutes. (Just kidding.)
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Downloaded the forms from IRS and Indiana DOR, printed and will let the client mail. I will advise them that there will be a penalty for missing the filing deadline of April 15, 2021. This is a new client and a new trust. Thanks, got my haircut last week. LOL
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In the old days we would use pen and ink, these days you probably found fillable pdf's. Is the trust paying the tax, or did you have to do a K-1 also? And how much penalty do you expect for being a month late -- maybe 51 cents, rounded up to a dollar?
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I remember those old days!
