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Personal Finance (Not Investing) • Trust tax software for > 5 returns

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Don't trusts require a special trust filing that differs from a "personal" tax return?

I could use clarification since I am about to create trusts for grandkids and I am concerned about creating a different type of tax nightmare.
In general, trusts of the sort that use an EIN (as opposed to using the grantor's SS#) do require a different tax form (a Form 1041, as opposed to a Form 1040).

However, the "Business" versions of consumer tax software tend to have the coding to do a Form 1041 (to a greater or lesser degree). (In the Turbotax world, that would be "Turbotax Business" but NOT "Turbotax Home and Business.")

Of course, some individuals use other capabilities of consumer level "Business" tax software for business reasons other than trusts and estates. I'm not sure if that is where the OP is getting tangled up, or if it the IRS restriction that others mentioned, or if it is trying to use one Intuit login for multiple Turbotax products (e..g. "Deluxe" and "Business").
OK. Thanks.

Is there a way to avoid filing a separate trust return for a grandchild? For example, (1) limit the income generated within the trust by selecting investments that don't throw off income (e.g., XDIV); or (2) have the trust distribute all (or most) income to the grandchild (e.g., UTMA account). I would prefer to avoid the pain of filing additional tax returns, particularly trust returns that are taxed at higher levels.

Statistics: Posted by JazzTime — Tue Jan 20, 2026 10:54 am — Replies 9 — Views 217



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