Sharing data from a Grantor Trust letter with a 1040 return

Alerts and notices

Per Form 1041 Instructions, a Grantor Trust may file Form 1041 or use an optional filing method that does not require filing Form 1041. For data sharing purposes, UltraTax CS only supports the "filing Form 1041" method using a separate employer identification number (EIN) issued to the Trust. Presumably, all Trust activity is reported to the IRS with the Trust's EIN, and not with the Grantor's Social Security Number (SSN). To avoid IRS matching problems, Grantor Trust data will be shared to Screen K1T in the K1 E/T folder. This will result in summarized reporting of the grantor trust data on the Grantor's individual return.

Exporting Grantor Trust data from the 1041 return

Complete the following steps if you prepared the client's 1041 return and want to retrieve the Grantor Trust data into the 1040 client.

  1. After you prepare the client's Grantor Report in the 1041 client's return, print or preview the 1041 return.
  2. Close the 1041 client.
  3. Open the 1040 client's return. The Data Sharing dialog opens automatically and prompts you to accept data from the Grantor Report.

Entering the Grantor Trust data directly into the 1040 return 

Complete these steps if you did not prepare the client's Grantor Trust Letter, but you are preparing the client's 1040 return. This procedure should be used only if all items were reported using a separate EIN issued to the Trust.

  1. Open Screen K1T in the K1 E/T folder.
  2. Enter the Trust's identifying information, and mark the Grant Trust checkbox near the top of the screen.
  3. Enter data in the Grantor Trust Income, Expenses, and Other Information section at the bottom of the screen.

If the Fiduciary uses an optional filing method and items are reported under the Grantor's SSN, you should not share data from the 1041 client into the 1040 client. Note that you can disable the data sharing feature for the 1041 client.

For these types of Grantor Trusts, enter the amounts from the Grantor Report printed from the 1041 client on the applicable screens within the 1040 client return to report the amounts in detail. (For example, instead of entering interest in the statement dialog for the Interest field on Screen K1T, enter interest in the Interest income field on Screen B&D in the Income folder.)