Form 1041 for US Tax Return
Form 1041 details income earned by an estate or trust from the time of the decedent’s death until the assets are distributed to beneficiaries. During this period, income can be generated from stocks, bonds, mutual funds, savings accounts, rented property, and a final paycheck.
As with other income tax returns, deductions and capital losses can reduce the amount of money owed. Any income earned before the date of death is reported on the decedent’s final tax return, a separate document filed by the estate executor. Assets passed straight to the beneficiary and not held by the estate or trust are not included on Form 1041.
Form 1041 Key Details
- Form 1041 is a tax return filed by estates or trusts that generated income after the decedent passed away and before the designated assets were transferred to beneficiaries.
- The executor, trustee, or personal representative of the estate or trust is responsible for filing Form 1041.
- Form 1041 does not need to be filed if the estate or trust generated an adjusted gross income (AGI) less than $600 unless any beneficiary is a nonresident alien.
- Certain income or deductions may require a complementary form or schedule.
- Form 1041 is due by the 15th day of the fourth month after the close of the tax year and can be sent electronically or by mail.
Form 1041 is an Internal Revenue Service (IRS) income tax return filed by the trustee or representative of a decedent’s estate, trust, or bankruptcy estate. Derived from Section 1041 of the Internal Revenue Code (IRC), Form 1041 is used to declare any taxable income that an estate or trust generated after the decedent passed away and before designated assets were transferred to beneficiaries.