Do I need to Withhold on this Trust?

Grantor Trust

A grantor trust is a trust whose assets and income are considered to be controlled by the grantor.

• Disregarded for tax purposes
• Uses the grantor's SSN
• Files an income tax return with grantor

Non-Grantor Trust

A non-grantor trust is a trust that is not owned by an individual and is viewed as a taxable entity.

• Separate taxable entity from the grantor.
• Generally uses FEIN.
• Files a fiduciary income tax return.

Items that may be helpful in determining trust status include:

• Trust instrument/document.
• Prior filing history.
• Federal elections.
• Professional advice is highly recommended to determine trust status, trust type, and filing requirements.

Do I need to Withhold on this Trust?

Note: This decision table is also available as a flowchart.

If the entity is a:	And	Then
Grantor trust	Any exemptions from Form 593-C apply	No withholding is required. Complete Form 593-C.
	No exemptions from Form 593-C apply	Withholding is required. Complete Form 593.
Non-grantor trust	Form 593-C loss or zero gain applies	No withholding is required. Complete Forms 593-C and 593-E.
	Section 351, 721, 1031, or 1033 of Form 593-C applies	No withholding required. Complete Form 593-C.
	Form 593-C installment sale applies	Reduced withholding required. Complete Forms 593-C and 593-I.
	None of the above applies	Withholding is required. Complete Form 593.