Form 1041-T- Allocation of Estimated Tax Payments to Beneficiaries is primarily used by a Trust to elect under section 643(g) to have any part of its estimated tax payments (but not income tax withheld) treated as if it were made by a beneficiary or beneficiaries. The fiduciary files Form 1041-T to make this election, and once made, the election is irrevocable. A Form 1041-T can also be used by a decedent’s estate but only in its final year.
This Form 1041-T must be filed by the sixty-fifth (65th) day following the tax year in which the return was due. It should be noted that filing Form 1041-T with the tax return is permitted, but it does not change the due date for filing the Form 1041-T. Accordingly, if the Form 1041-T is filed with the tax return (Form 1041), the tax return would need to be filed by the sixty-fifth (65th) day following the tax year in which the return was due in order for the allocation of estimated payments to be consider timely to the beneficiaries.
To report on the tax return (Form 1041) that a 1041-T has been filed (either separately or with the tax return) from the main menu of the tax return (Form 1041) select,
- Heading Information
- Other Information
- Form 1041-T filed
- Enter the date that the 1041-T was filed.
To create a Form 1041-T that will be filed with the tax return, from the main menu of the tax return (Form 1041) select,
- Tax and Payments
- Total Payments
- Estimated Tax Payments Allocated to Beneficiaries
- Complete the applicable entries for allocating the payments to the beneficiaries.
NOTE: This is a guide on entering a Form 1041-T into the Keystone Tax Solutions Pro program. This is not intended as tax advice.
Additional Resources
Instructions for Form 1041 – U.S Income Tax Return for Estates and Trusts
1041-T – Allocation of Estimated Tax Payments to Beneficiaries and its Instructions