Schedule G—Tax Computation and Payments

Part I—Tax Computation

Line 1a

2025 Tax Rate Schedule. For tax years beginning in 2025, figure the tax using the following Tax Rate Schedule and enter the tax on line 1a. However, see the Instructions for Schedule D (Form 1041) and the Qualified Dividends Tax Worksheet, later.

2025 Tax Rate Schedule

If taxable income is:

But not over Over—

Its tax is:

—

Of the amount over

— $0 $3,150 10% $0 3,150 11,450 $315.00 + 24% 3,150 11,450 15,650 $2,307.00 + 35% 11,450 15,650 ----- $3,777.00 + 37% 15,650

Schedule D (Form 1041) and Schedule D Tax Work- sheet. Use Part V of Schedule D (Form 1041), or the Schedule D Tax Worksheet, whichever is applicable, to figure the estate’s or trust’s tax if the estate or trust files Schedule D (Form 1041) and has:

• A net capital gain and any taxable income, or

• Qualified dividends on line 2b(2) of Form 1041 and any taxable income.

Qualified Dividends Tax Worksheet. If you don’t have to complete Part I or II of Schedule D and the estate or trust has an amount entered on line 2b(2) of Form 1041 and any taxable income (line 23), then figure the estate’s or trust’s tax using the worksheet, later, and enter the tax on line 1a.

Note: You must reduce the amount you enter on line 2b(2) of Form 1041 by the portion of the section 691(c) deduction claimed on line 19 of Form 1041 if the estate or trust received qualified dividends that were IRD.

Line 1c—Alternative Minimum Tax Attach Schedule I (Form 1041) if any of the following apply.

• The estate or trust must complete Schedule B.

• The estate or trust claims a credit on line 2b, 2c, or 2d of Schedule G.

• The estate’s or trust’s share of alternative minimum taxable income (line 27 of Schedule I (Form 1041)) exceeds $30,700. Enter the amount from line 54 of Schedule I (Form 1041) on line 1c.

Line 1d—Certain Credit Recapture, Excessive Payments, and Penalties If the estate or trust has certain credit recaptures, excessive payments, or penalties from Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, enter the amount from column (q) of Form 4255, Part I, line 3, on line 1d.

Line 1e—Total If the amount from line 14 of Form 8978 is a positive amount, include it in the total reported on line 1e. On the dotted line

Instructions for Form 1041 (2025) 33

Qualified Dividends Tax Worksheet—Schedule G, Part I, Line 1a Keep for Your Records

Caution: Don’t use this worksheet if the estate or trust must complete Schedule D (Form 1041).

1. Enter the amount from Form 1041, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter the amount from Form 1041, line 2b(2) . . . . . . . . 2.

3. If you are claiming investment interest expense on Form 4952, enter the amount from line 4g; otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 4.

5. Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 5.

6. Enter the smaller of the amount on line 1 or $3,250 . . . . . . . . . . . . . . . . . . . . 6.

7. Enter the smaller of the amount on line 5 or line 6 . . . . . . . . . . . . . . . . . . . . . . 7.

8. Subtract line 7 from line 6. If zero or less, enter -0-. This amount is taxed at 0% . . . . . . . . . . . . . . . . 8.

9. Enter the smaller of line 1 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Subtract line 8 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Enter the smaller of line 1 or $15,900 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Add lines 5 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Subtract line 12 from line 11. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . 13.

14. Enter the smaller of line 10 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Multiply line 14 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Enter the amount from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Add lines 8 and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

18. Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . 18.

19. Multiply line 18 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.

20. Figure the tax on the amount on line 5. Use the 2025 Tax Rate Schedule . . . . . . . . . . . . . . . . . . . . . . 20.

21. Add lines 15, 19, and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.

22. Figure the tax on the amount on line 1. Use the 2025 Tax Rate Schedule . . . . . . . . . . . . . . . . . . . . . . 22.

23. Tax on all taxable income. Enter the smaller of line 21 or line 22 here and on Schedule G, line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.

next to line 1e, enter “From Form 8978” and the amount. Attach Form 8978.

Line 2a—Foreign Tax Credit Attach Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), if you elect to claim credit for income or profits taxes paid or accrued to a foreign country or a U.S. territory. The estate or trust may claim credit for that part of the foreign taxes not allocable to the beneficiaries (including charitable beneficiaries). Enter the estate’s or trust’s share of the credit on line 2a. See Pub. 514, Foreign Tax Credit for Individuals, for details.

Line 2b—General Business Credit

Caution: Don’t include any amounts that are allocated to a beneficiary. Credits that are allocated between the estate or trust and the beneficiaries are listed in the instructions for box 13 of Schedule K-1, later. Generally, these credits are apportioned on the basis of the income allocable to the estate or trust and the beneficiaries.

Enter on line 2b the estate’s or trust’s total general business credit allowed for the current year from Form 3800. The estate or trust must file Form 3800 to claim any of the general business credits. Generally, if the estate’s or trust’s

only source of a credit is from a pass-through entity and the beneficiary isn’t entitled to an allocable share of a credit, you aren’t required to complete the source form for that credit. However, certain credits have limitations and special computations that may require you to complete the source form. See the Instructions for Form 3800 for more information.

Line 2c—Credit for Prior Year Minimum Tax An estate or trust that paid AMT in a previous year may be eligible for a minimum tax credit in 2025. See Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts.

Line 2d—Bond Credits Complete and attach Form 8912, Credit to Holders of Tax Credit Bonds, if the estate or trust claims a credit for holding a tax credit bond. Also, be sure to include the credit in interest income.

Line 2e—Total Credits To claim a credit allowable to the estate or trust other than the credits entered on lines 2a through 2d, include the allowable credit in the total for line 2e. Complete and attach the

34 Instructions for Form 1041 (2025)

ESBT Tax Worksheet—Schedule G, Part I, Line 4 Keep for Your Records

ESBT Tax Computation

1. Ordinary income (loss) from Schedule K-1 (Form 1120-S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2a. Total ordinary dividends from Schedule K-1 (Form 1120-S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a.

2b. Qualified dividends from Schedule K-1 (Form 1120-S) . . . . . . . . . . . . . . . . . . . 2b.

3. Capital gain. See instructions and attach Schedule D (Form 1041) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Other income (loss) reported on Schedule K-1 (Form 1120-S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Total income. Add lines 1, 2a, 3, and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Other allowable deductions from Schedule K-1 (Form 1120-S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Administrative expenses (allocated to the S portion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. State and local income taxes (allocated to the S portion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Interest expense on indebtedness to acquire S corporation stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Charitable contribution deduction. Check here if deduction includes prior year carryover [ ] . . . . . . 10.

11. Qualified business income deduction (S portion). Attach Form 8995 or 8995-A . . . . . . . . . . . . . . . . . 11.

12. Total deductions. Add lines 6 through 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Taxable income (S portion). Subtract line 12 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14a. Tax. Tax on taxable income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . 14a.

14b. Alternative minimum tax (S portion). Attach Schedule I (Form 1041) . . . . . . . 14b.

14c. Total. Add lines 14a and 14b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c.

15a. Foreign tax credit (S portion). Attach Form 1116 . . . . . . . . . . . . . . . . . . . . . . . . 15a.

15b. General business credit (S portion). Attach Form 3800 . . . . . . . . . . . . . . . . . . 15b.

15c. Credit for prior-year minimum tax (S portion). Attach Form 8801 . . . . . . . . . . . 15c.

15d. Bond credits (S portion). Attach Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d.

15e. Total credits. Add lines 15a through 15d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e.

16. Recapture taxes (S portion). Check if from: Form 4255 [ ] or Form 8611 [ ] . . . . . . . . . . . . . . . . . . 16.

17. Total ESBT tax. Subtract line 15e from line 14c and add line 16. Enter here and on Form 1041, Schedule G, Part I, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

appropriate form and enter the form number and amount of the allowable credit on the dotted line to the left of the entry space.

If the amount from line 14 of Form 8978 is a negative amount, treat it as a positive amount and add it to the total reported on line 2e. On the dotted line next to line 2e, enter “From Form 8978” and the amount. Attach Form 8978.

Line 4—Tax on the ESBT Portion of the Trust Use the ESBT Tax Worksheet to figure the ESBT tax. Enter the amount from line 17 of the ESBT Tax Worksheet on line 4.

See Electing Small Business Trusts (ESBTs), earlier, for the special tax computation rules that apply to the portion of an ESBT consisting of stock in one or more S corporations.

Line 5—Net Investment Income Tax (NIIT) Enter the amount of NIIT calculated and attach Form 8960. See the Instructions for Form 8960 to calculate the tax, and Net Investment Income Tax (NIIT), later, for more information.

Line 6a—Certain Credit Recapture, Excessive Payments, and Penalties If the estate or trust has certain credit recaptures, excessive payments, or penalties from Form 4255, enter the amount from column (r) of Form 4255, Part I, line 3, on line 6a.

Line 6b—Recapture of Low-Income Housing Credit If the estate or trust disposed of property (or there was a reduction in the qualified basis of the property) on which the low-income housing credit was claimed, see Form 8611, Recapture of Low-Income Housing Credit, to figure any recapture tax allocable to the estate or trust. Include the tax on line 6b and enter “LIHCR” on the dotted line to the left of the entry space.

Line 6c—Other Recapture Taxes

Recapture of qualified electric vehicle credit. If the estate or trust claimed the qualified electric vehicle credit in a prior tax year for a vehicle that ceased to qualify for the credit, part or all of the credit may have to be recaptured. See Regulations section 1.30-1(b) for details. If the estate or trust

Instructions for Form 1041 (2025) 35

owes any recapture tax, include it on line 6c and enter “QEVCR” on the dotted line to the left of the entry space.

Recapture of the new markets credit. If the estate or trust owes any new markets recapture tax, include it on line 6c and enter “NMCR” on the dotted line to the left of the entry space. For more information, including how to figure the recapture amount, see section 45D(g).

Recapture of the credit for employer-provided childcare facilities and services. If the facility ceased to operate as a qualified childcare facility or there was a change in ownership, part or all of the credit may have to be recaptured. See Form 8882, Credit for Employer-Provided Childcare Facilities and Services, for details. If the estate or trust owes any recapture tax, include it on line 6c and enter “ECCFR” on the dotted line to the left of the entry space.

Recapture of the alternative motor vehicle credit. See section 30B(h)(8) for details. Include the tax on line 6c and enter “AMVCR” on the dotted line to the left of the entry space.

Line 7—Household Employment Taxes If any of the following apply, see Schedule H (Form 1040) and its instructions to determine if the estate or trust owes these taxes.

1. The estate or trust paid any one household employee cash wages of $2,800 or more in 2025. Cash wages include wages paid by checks, money orders, etc. When figuring the amount of cash wages paid, combine cash wages paid by the estate or trust with cash wages paid to the household employee in the same calendar year by the household of the decedent or beneficiary for whom the administrator, executor, or trustee of the estate or trust is acting.

2. The estate or trust withheld federal income tax during 2025 at the request of any household employee.

3. The estate or trust paid total cash wages of $1,000 or more in any calendar quarter of 2024 or 2025 to household employees.

Enter on line 7 any household employment taxes owed from Schedule H (Form 1040), Part III, line 26.

Note: See Amended Schedule H (Form 1040 ) under F. Initial Return, Amended Return, etc., earlier, for information on filing an amended Schedule H (Form 1040) for a Form 1041.

Line 8—Other Taxes and Amounts Due

Triggering event under section 965(i). If you had a triggering event under section 965(i) during the year, enter on line 8 the current-year tax liability from the triggered deferred net 965 tax liability from column (f) of Form 965-A, Part IV.

ESBTs. If a triggering event occurred in the S portion of the ESBT, also include on the attachment that shows the amount of the net 965 tax liability attributable to the S portion of the trust the triggered deferred net 965 tax liability from column (f) of Form 965-A, Part IV.