Generally, yes, a trust may need to file a tax return, but it depends on several factors, primarily the type of trust and its income level.

Here's a breakdown of when trusts typically need to file tax returns:

1. Trusts that Typically File Form 1041 (U.S. Income Tax Return for Estates and Trusts):

• Irrevocable Trusts: Generally treated as separate tax entities, these trusts typically file Form 1041 annually if they have gross income of $600 or more, any taxable income, or a non-resident alien beneficiary.
• Revocable Trusts (after the Grantor's death): Upon the grantor's death, a revocable trust becomes irrevocable and must file Form 1041 if it meets the same income or beneficiary criteria as an irrevocable trust.
• Complex and Simple Trusts: These trusts also need to file Form 1041 if they meet the income or beneficiary requirements.

2. Trusts that May Not Need to File Form 1041 (or Have Simplified Reporting):

• Grantor Trusts (during the grantor's lifetime): The income from these trusts is typically reported on the grantor's personal tax return (Form 1040), and the trust may not need to file a separate Form 1041. Some grantor trusts may file Form 1041 for informational purposes.
• Revocable Trusts (during the grantor's lifetime): During the grantor's life, these are usually treated as grantor trusts and generally do not file a separate tax return.

Important Notes:

• Income Threshold: The $600 income threshold is a common trigger for filing, but it can vary.
• Professional Advice: Trust and tax laws are complex. Consulting with a qualified tax professional or attorney is recommended to determine specific filing requirements.

• More info from IRS.gov