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

Future Developments

For the latest information about developments related to Form 1041 and Schedules A, B, G, J, K-1 and its instructions, such as legislation enacted after they were published, go to

What's New

Form 1041 E-filing.   For tax year 2014, Form 1041 must be e-Filed using Form 8453-FE, U.S. Estate or Trust Declaration for an IRS e-File Return.

   Note: Form 8453-F, U.S. Estate or Trust Income Tax Declaration and Signature for Electronic Filing, is obsolete.

  For Form 1041 e-File signature authorizations, see Form 8879-F, IRS e-file Signature Authorization for Form 1041, and its instructions.

Beginning January 1, 2015, Form 8879-F can only be associated with a single Form 1041. Form 8879-F can no longer be used with multiple Forms 1041.

  For more information about e-filing returns through MeF, see Publication 4164, Modernization e-File (MeF) Guide for Software Developers and Transmitters.

Capital gains and qualified dividends.   For tax year 2014, the 20% maximum capital gains rate applies to estates and trusts with income above $12,150. The 0% and 15% rates continue to apply to certain threshold amounts. The 0% rate applies to amounts up to $2,500. The 15% rate applies to amounts over $2,500 and up to $12,150.

Bankruptcy estate filing threshold.   For tax year 2014, the requirement to file a return for a bankruptcy estate applies only if gross income is at least $10,150.

Qualified disability trust.   For tax year 2014, a qualified disability trust can claim an exemption of up to $3,950. A trust with modified adjusted gross income above $254,200 loses part of the exemption deduction. See the instructions for Line 20—Exemption, later, for more details.

Section 67(e) regulations.   For 2014, the proposed regulations for section 67(e) clarify which costs, such as investment advisory and bundled fiduciary fees, incurred by estates and nongrantor trusts are and are not exempt from the 2% floor for miscellaneous itemized deductions. Notice 2011-37 (available at extends the existing interim guidance under the proposed regulations for section 67(e) providing that taxpayers will not determine the portion of a bundled fiduciary fee that is subject to the 2% floor.

   Note. The final regulations under section 67(e) have been issued (available at, amended at–32_IRB/ar06.html). The effective date of the regulations has been amended to apply to tax years beginning on or after January 1, 2015.


  • Review a copy of the will or trust instrument, including any amendments or codicils, before preparing an estate's or trust's return.

  • We encourage you to use Form 1041-V, Payment Voucher, to accompany your payment of a balance of tax due on Form 1041, particularly if your payment is made by check or money order.

Net investment income tax.   This tax applies to certain investment income of estates and trusts. Use Form 8960 and its instructions to figure your net investment income tax. See Net Investment Income Tax, later, for more information.

Item A. Type of Entity.   On page 1 of Form 1041, Item A, taxpayers should select more than one box, when appropriate, to reflect the type of entity.

Item F. Net operating loss (NOL) carryback.   A Net operating loss carryback check box was added in Item F of the heading. If an amended return is filed for an NOL carryback, check the box. See Amended Return, later, for complete information.

Item G. Section 645 election.   If the estate has made a section 645 election the executor must check Item G and provide the taxpayer identification number (TIN) of the electing trust with the highest total asset value in the box provided.

  The executor must also attach a statement to Form 1041 providing the following information for each electing trust (including the electing trust provided in Item G): (a) the name of the electing trust, (b) the TIN of the electing trust, and (c) the name and address of the trustee of the electing trust.

Net operating loss deduction (NOLD).   Line 15b was revised to report net operating loss deductions. Prior to tax year 2013, NOLDs were reported on line 15a.

   Note. Miscellaneous itemized deductions subject to the 2% floor are reported on line 15c.

Specified domestic entity.

The IRS anticipates issuing regulations that will require a domestic entity to file Form 8938 if the entity is formed or availed of to hold specified foreign financial assets and the value of those assets exceeds the appropriate reporting threshold. Until the IRS issues such regulations, only individuals must file Form 8938.

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Unresolved Tax Issues

If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate Service (TAS). The Taxpayer Advocate independently represents the estate's or trust's interests and concerns within the IRS by protecting its rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that the estate's or trust's case is given a complete and impartial review.

The estate's or trust's assigned personal advocate will listen to its point of view and will work with the estate or trust to address its concerns. The estate or trust can expect the advocate to provide:

  • An impartial and independent look at your problem,

  • Timely acknowledgment,

  • The name and phone number of the individual assigned to its case,

  • Updates on progress,

  • Timeframes for action,

  • Speedy resolution, and

  • Courteous service.

When contacting the Taxpayer Advocate, you should provide the following information:

  • The estate's or trust's name, address, and employer identification number (EIN).

  • The name and telephone number of an authorized contact person and the hours he or she can be reached.

  • The type of tax return and year(s) involved.

  • A detailed description of the problem.

  • Previous attempts to solve the problem and the office that had been contacted.

  • A description of the hardship the estate or trust is facing and supporting documentation (if applicable).

You can contact a Taxpayer Advocate as follows:

  • Call the Taxpayer Advocate's toll-free number: 1-877-777-4778.

  • Call, write, or fax the Taxpayer Advocate office in its area (see Pub. 1546, Taxpayer Advocate Service, Your Voice At The IRS, for addresses and phone numbers).

  • TTY/TDD help is available by calling 1-800-829-4059.

  • Visit the website at

How To Get Forms and Publications

Internet. You can access the IRS website 24 hours a day, 7 days a week, at to:

  • Download forms, including talking tax forms, instructions, and publications;

  • Order IRS products;

  • Use the online Internal Revenue Code, regulations, and other official guidance;

  • Research your tax questions;

  • Search publications by topic or keyword;

  • Apply for an Employer Identification Number (EIN); and

  • Sign up to receive local and national tax news by email.

Phone. You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676). If you have access to TTY/TDD equipment, you can call 1-800-829-4059 to ask tax questions or order forms and publications. The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. These individuals can also contact the IRS through relay services such as the Federal Relay Service available at

Walk-in. You can also get most forms and publications at your local IRS office.

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