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Level 1
April 14, 2026
Question

PA now follows the Federal law for Grantor Trusts and no tax should be paid with the return but the program does not seem to address this ????

  • April 14, 2026
  • 1 reply
  • 6 views
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1 reply

Accountant-Man
Level 13
April 14, 2026

When you prepare a 1041 Grantor Trust, you do not put any items in the regular spaces(bank interest, dividends worksheets, or the lines for Int & Divs.)

You only put the income and expense items on the Grantor Worksheet and PA carries nothing to the PA 1041.

It all goes on the 1040 of the grantor. Since there is an EIN for the trust, I use the Grantor Worksheet but I enter the items in the 1040 K-1 input.

When there is no Trust EIN and therefore no Trust 1041, I just enter those items on 1040 Sch B, etc.

** I'm still a champion... of the world! Even without The Lounge.
Level 3
April 14, 2026

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