Q: Do I need to file tax form 1041 for irrevocable minor trust with no current income or disbursements?
I have an irrevocable minor trust set up for my daughter that is held until she turns 18. The trust had some interest income the first year but none since, as it's now in an interest-free account. There have been no disbursements. Do I still need to file tax form 1041 every year?
A: You will want to consult a tax professional to confirm specific trust filing rules. Generally, a Form 1041 (U.S. Income Tax Return for Estates and Trusts) is required for a trust if it has gross income of $600 or more in a tax year or if it has any taxable income (even if under $600). Since you've stated the trust earns no income, it sounds like there could be no gross income to report. And, distributions can sometimes trigger reporting. Again, best to consult in detail with an accountant experienced in preparing estate and trust returns.
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