Part II—Tax Computation

Income

Line 2a—Total Ordinary Dividends

Report the total of all ordinary dividends received during the tax year.

Line 2b—Qualified Dividends

Enter the ANST's total qualified dividends on line 2b and use Part IV of Schedule D to figure the ANST's tax. Qualified dividends are eligible for a lower tax rate than other ordinary income. Generally, these dividends are shown in box 1b of Form(s) 1099-DIV, Dividends and Distributions. See Pub. 550, Investment Income and Expenses, for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.

Exceptions. Some dividends may be reported as qualified dividends in box 1b of Form 1099-DIV but aren't qualified dividends. These include the following.

• Dividends received on any share of stock that the ANST held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock isn't entitled to receive the next dividend payment. When counting the number of days the ANST held the stock, include the day you disposed of the stock but not the day you acquired it.

Instructions for Form 1041-N (Rev. 12-2025) 3

• Dividends attributable to periods totaling more than 366 days that the ANST received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule above.

• Dividends on any share of stock to the extent that the ANST is under an obligation (including a short sale) to make related payments with respect to positions in substantially similar or related property.

• Payments in lieu of dividends, but only if you know or have reason to know that the payments aren't qualified dividends.

Line 3—Capital Gain or (Loss)

Enter the gain from Schedule D, line 11, or the loss from Schedule D, line 12.

Note: Report capital gain distributions on Form 1041-N, Schedule D, line 7.

Line 4—Other Income

List the type and amount of income not included on lines 1a through 3. List the types and amounts on an attached schedule if the ANST has more than one item of other income.

Include on line 4 taxable contributions received from an ANC. See also Part III—Other Information, Question 1, later, for additional information that may need to be attached to the return. Include on this line income recognized on the early disposition of noncash property for which the ANST previously made a section 247(g) election. Report on Schedule D the capital gain recognized on such disposition. See Section 247(g) Election Property, later, for additional information.

If the ANST is reporting global intangible low-taxed income (GILTI), include it on the attached statement. Complete and attach Form 8992.

Deductions

Allocation of Deductions for Tax-Exempt Income

Generally, no deduction is allowed for any expense that is allocable to tax-exempt income, such as interest on state or local bonds.

Exceptions. State income taxes and business expenses that are allocable to tax-exempt interest are deductible.

Expenses that are directly allocable to tax-exempt income are allocable only to tax-exempt income. A reasonable proportion of expenses indirectly allocable to both tax-exempt income and other income must be allocated to each class of income.

Limitations on Deductions

Generally, the amount an ANST has “at-risk” limits the loss it can deduct in any tax year. Also, section 469 and its regulations generally limit losses from passive activities to the amount of income derived from all passive activities. Similarly, credits from passive activities are generally limited to the tax attributable to such activities.

For details on these and other limitations on deductions, see Deductions in the Instructions for Form 1041.

Miscellaneous itemized deductions subject to the 2% floor will not be allowed for tax years 2018 through 2025.

Line 9—Other Deductions

Attach a schedule listing by type and amount all allowable deductions that aren't deductible elsewhere on the form. No deduction is allowed for distributions to beneficiaries.

An ANST may elect under section 965(n) to determine the amount of the net operating loss (NOL) for a tax year determined under section 172 and the amount of taxable income to be reduced by NOL carryovers or carrybacks to such tax year without regard to certain amounts under section 172. The amount not taken into consideration (the reduction amount) is generally equal to the amount of the section 965(a) inclusion (net of the section 965(c) deduction). If, as a result of an election under section 965(n), the amount of the NOL for the tax year is adjusted, the reduction amount is included in other income on line 4. If, as a result of an election under section 965(n), the taxable income reduced by NOL carryovers or carrybacks is reduced, the NOL deduction on line 4 is reduced by the reduction amount. See section 965(n) and the regulations thereunder for more information.

In determining whether an expense is deductible, it must be determined whether the expense would be “commonly or customarily” incurred by a hypothetical individual owning the same property. A cost incurred by an ANST is an allowable deduction to the extent that it is excluded from the definition of miscellaneous itemized deductions under section 67(b) and commonly or customarily would not be incurred by a hypothetical individual holding the same property.

Include on line 9 the deduction for qualified business income. For information on how to figure the trust's deduction for qualified business income, see Form 8995, Qualified Business Income Deduction Simplified Computation; and Form 8995-A, Qualified Business Income Deduction.

Line 10—Reserved for Future Use

Don’t enter any information on line 10.

Line 11—Exemption

A trust whose governing instrument requires all income to be distributed currently is allowed a $300 exemption, even if it distributed amounts other than income during the tax year. All other trusts are allowed a $100 exemption.

Tax and Payments

Line 14—Tax

If the ANST doesn't have a net capital gain or qualified dividends and has an amount greater than zero on line 13, check the first box on line 14, multiply the amount on line 13 by 10% (0.10), and enter the result on line 14.

Schedule D. If the ANST had a net capital gain (or qualified dividends) and any taxable income, complete Part IV of Schedule D, enter the tax (or -0-, if applicable) from line 28 of Schedule D on line 14, and check the “Schedule D” box.

4 Instructions for Form 1041-N (Rev. 12-2025)

Line 15—Credits

Specify the type of credit being claimed or form number and attach any required credit forms. If you are claiming more than one type of credit, attach a schedule listing the type and amount of each credit claimed. See the Instructions for Form 1041 for details on the credits that may be claimed.

Line 16—Total Tax

If the ANST owes any additional taxes (for example, recapture taxes), include these taxes on line 16. To the left of the entry space, enter the type and amount of the tax. Also, attach to Form 1041-N any forms required to figure these taxes. See the Instructions for Form 1041 for more details on additional taxes that may apply.

If the ANST shows more than one type of additional tax on this line, attach a schedule showing the type and amount of each tax, and include the total of all additional taxes on this line.

Report on this line of an amended return the additional 10% tax for the year in which the ANST received a contribution of noncash property from an ANC, and elected to defer the recognition of income under section 247(g), but disposed of the property within the first tax year subsequent to the tax year the ANST received the property. The increase in tax due to the inclusion of the deferred income, which is the base amount for the computation of the additional 10% tax shown on this line, should be included on line 14. If the amended return also shows changes to income, deductions, or credits unrelated to the inclusion of the deferred income, attach a schedule showing the computation of the additional tax due only to the inclusion of the deferred income. See also Part III—Other Information, Question 1 , later, for the statement to be attached to the amended return.

Line 17—Current Year Net 965 Tax Liability Paid

If the ANST made a payment with respect to a current year net 965 tax liability resulting from an S-corporation triggering event, enter on line 17 the amount of the payment reported in Form 965-A, Part II, column (k), for the current year.

Line 18—Payments

Include on line18 any:

• Estimated tax payments made for the tax year;

• Tax paid with a request for an extension of time to file;

• Federal income tax withheld (for example, backup withholding);

• Payment made in the current year with respect to a net 965 tax liability; and

• Credit for tax paid on undistributed capital gains. Attach Copy B of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains.

Line 19—Elective Payment Election

Enter any elective payment election amount from Form 3800, Part III, line 6, column (j). See the Instructions for Form 3800.

Note: An ANST that has applied for tax-exempt status and been recognized as exempt under section 501(a) should use Form 990-T, Exempt Organization Business Income Tax Return, when making an elective payment election, and

should not file Form 1041-N for a period in which the trust is exempt. See the Instructions for Form 990-T.

Line 20—Tax Due

Payments made to the federal government must be processed electronically. Go to IRS.gov/Payments for more information on how to make a payment and also see EFTPS and Same-day wire below.

EFTPS. Payment of the tax due may be submitted electronically through the Electronic Federal Tax Payment System (EFTPS). EFTPS is a free service of the Department of the Treasury.

Go to IRS.gov/EFTPS and EFTPS.gov for more information.

Same-day wire. Payment of the tax due may be submitted electronically through same-day wire from your financial institution. Contact your financial institution for availability, cost, and time frames. Go to IRS.gov/SameDayWire for more information.

Paying by check. Make the check payable to “United States Treasury.” Write the donor’s taxpayer identification number and “Form 1041–N” to assist us in posting it to the proper account. Go to IRS.gov/PayByMail for more information.

Paying by cash. You may be able to pay your balance due with cash at a participating retail store. Go to IRS.gov/ PayByCash for more information.

Line 21—Overpayment

If you have access to U.S. banking services, you should use direct deposit for any refunds, whenever possible. Go to IRS.gov/DirectDeposit for more information.

If there’s an overpayment, complete Part II, lines 22c–22e, to enter your banking information and receive your refund by direct deposit.

Line 22a

Credited to next year’s estimated tax Enter on line 22a the amount, if any, of the overpayment on line 21 you want applied to your 2026 estimated tax. We will apply this amount to your account unless you include a statement requesting us to apply it to your spouse's account. Include your spouse's social security number in the statement.

Line 22b

Enter the amount of overpayment that you would like to receive as a refund.

Line 22c

The routing number for your financial institution must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Otherwise, the direct deposit will be rejected and a check sent instead.

Instructions for Form 1041-N (Rev. 12-2025) 5

Line 22d

Check the appropriate box for the type of account. Don't check more than one box. You must check the correct box to ensure your deposit is accepted.

Line 22e

The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. Don't include the check number.