Prepare a grantor trust return

Do the following to enter information for a grantor trust return.
  1. In the folders block, select the
    General
    folder, then open the
    1041
    screen.
  2. In the Identification Information section, enter information applicable for the trust.
  3. In the Estate/Trust Information section, in the
    Type of entity
    field, select
    Grantor trust
    from the dropdown.
  4. Select
    View
    then
    Beneficiary Information
    .
  5. Select the
    Beneficiary
    tab then enter the beneficiary name, address, and identification number.
  6. Select the
    Federal
    tab and enter information to allocate the income amounts if there's more than 1 beneficiary and they aren't allocating equally.
  7. Enter income and deductions for the grantor trust in the
    Income and Deductions
    folders.
    note
    A Grantor/Agency Report of Income, Deductions, Credits (instead of Schedule K-1) is prepared for each beneficiary of a grantor trust return.

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