IRS Form 1041 (U.S. Income Tax Return for Estates and Trusts) is used by fiduciaries to report the income, deductions, gains, and losses of an estate or trust.

Purpose of Form 1041

  • Income Reporting. Form 1041 reports gross income received by an estate or trust and allowable deductions and credits.
  • Distributions to Beneficiaries. If distributions were made to beneficiaries during the tax year, Form 1041 includes a Schedule K-1 (Form 1041) for each beneficiary, which shows their allocation of distributable net income (DNI). The beneficiary is responsible for reporting their allocation of income on their own tax return and paying taxes on those net earnings.

Who Must File & Deadlines

  • Fiduciaries. Executors of estates, administrators, and trustees of trusts must file Form 1041 if the estate or trust has gross income of $600 or more during the tax year.
  • Nongrantor Trusts. A trust generally only files Form 1041 if it is treated as a nongrantor trust for federal tax purposes. A grantor trust does not file a Form 1041 because the trust income & expense is reported directly on the grantor’s income tax return.
  • Due Date. Form 1041 must be filed annually for each year the trust or estate has gross income that exceeds the threshold. The filing is generally due by the 15th day of the 4th month after the end of the tax year, which is April 15th for calendar-year filers. If the due date falls on a weekend or holiday, the filing deadline is the next business day. Extensions can be requested using Form 7004 (Application for Extension of Time to File)

Key Information Reported

  • Estate or Trust Information. Name of the estate or trust, employer identification number (EIN), date entity was created, address, and type of entity (e.g., estate, simple trust, complex trust, grantor trust, etc.)
  • Gross Income Information. The trust or estate reports the gross income from interest, dividends, capital gains, rents, royalties, and business income or loss.
  • Deductions. A trust or estate may be entitled to deductions for interest expense, taxes, fiduciary or trustee fees, and other allowable deductions.
  • Income Distribution Deduction. The trust or estate is generally allowed a deduction for cash and other property distributed to a beneficiary. Form 1041 Schedule B reports the income distribution deduction and distributable net income (DNI) calculation.
  • Schedule K-1. Each beneficiary who receives a distribution will receive a Schedule K-1, which reports their allocation of income and deductions.

Video Tutorials

Please visit our channel for tutorials on how to prepare Form 1041 for nongrantor trusts and estates:

Additional Information

Fiduciaries can find more information in the Form 1041 Instructions and IRS Publication 559 (Survivors, Executors, and Administrators).