Instructions for Form 1041 and Schedules A, B, G, J, and K-1

U.S. Income Tax Return for Estates and Trusts

Section references are to the Internal Revenue Code unless otherwise noted.

Contents Page What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Photographs of Missing Children . . . . . . . . . . . . . . . . 2 The Taxpayer Advocate Service (TAS) Is Here To

Help You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 How To Get Forms and Publications . . . . . . . . . . . . . . 3 General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 3 Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Income Taxation of Trusts and Decedents’

Estates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Abusive Trust Arrangements . . . . . . . . . . . . . . . . . . . 3 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Electronic Filing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 When To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Period Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Where To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Who Must Sign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Accounting Methods . . . . . . . . . . . . . . . . . . . . . . . . . 9 Accounting Periods . . . . . . . . . . . . . . . . . . . . . . . . . 10 Rounding Off to Whole Dollars . . . . . . . . . . . . . . . . . 10 Estimated Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Interest and Penalties . . . . . . . . . . . . . . . . . . . . . . . 11 Other Forms That May Be Required . . . . . . . . . . . . . 11 Additional Information . . . . . . . . . . . . . . . . . . . . . . . 13 Assembly and Attachments . . . . . . . . . . . . . . . . . . . 13 Special Reporting Instructions . . . . . . . . . . . . . . . . . 13 Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . 18 Name of Estate or Trust . . . . . . . . . . . . . . . . . . . . . . 18 Name and Title of Fiduciary . . . . . . . . . . . . . . . . . . . 18 Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 A. Type of Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 B. Number of Schedules K-1 Attached . . . . . . . . . . . 19 C. Employer Identification Number . . . . . . . . . . . . . . 19 D. Date Entity Created . . . . . . . . . . . . . . . . . . . . . . . 19 E. Nonexempt Charitable and Split-Interest Trusts . . . 19 F. Initial Return, Amended Return, etc. . . . . . . . . . . . 20 G. Section 645 Election . . . . . . . . . . . . . . . . . . . . . . 21 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Limitations on Deductions . . . . . . . . . . . . . . . . . . . . 23

Contents Page Tax and Payments . . . . . . . . . . . . . . . . . . . . . . . . . 29 Schedule A—Charitable Deduction . . . . . . . . . . . . . 30 Schedule B—Income Distribution Deduction . . . . . . . 31 Schedule G—Tax Computation and Payments . . . . . 33 Net Investment Income Tax (NIIT) . . . . . . . . . . . . . . 38 Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Schedule J (Form 1041)—Accumulation

Distribution for Certain Complex Trusts . . . . . . . . 40 Schedule K-1 (Form 1041)—Beneficiary’s Share of

Income, Deductions, Credits, etc. . . . . . . . . . . . . 43 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55