Form 41 - Schedule K-1 - Fiduciary Income Tax Return

FORM

nstructIons

reParatIon oF

labama

ePartment oF

evenue

2014

SCHEDULE

Form 41 and schedule K-1

K-1

FOR

FORM

Fiduciary Income tax return

INSTRUCTIONS

Alabama Form 41

Special Instructions for CRATs and CRUTs

When completing a Form 41 for a CRAT or CRUT, the return should

be completed using the standard instructions down to line 5 of page

General Instructions

1. Line 6 should then be completed by entering 0 and checking “al-

What’s New

ternate tax method.”

Alabama Grantor Trust will now file ADOR Schedule G in place of

Alabama Schedule K-1.

Refer to Grantor Trust Returns reporting requirements on page 4.

Alabama Form 41

E-file is available please contact your software provider.

Return Preparation Instructions

Page 1 – Taxpayer and Tax Return Information – Please provide

Due Date for the Alabama Form 41. Calendar year returns are

the information requested as instructed by the upper portion of the

due on or before the 15th day of April following the close of the cal-

form.

endar year. Fiscal year or short year returns are due on or before the

Note Do not use the Employer Identification Number of the ac-

15th day of the fourth month following the close of the fiscal or short

year. If the due date falls on a Saturday, Sunday, or holiday, the re-

counting firm, the trustee, the attorney’s firm, or of an interest payor.

turn is due on the following business day.

Line 1. Enter the amount from page 3, Schedule B, line 18c, Col-

umn C (Alabama Amount).

Mail returns with payments to:

Mailing Address for the Alabama Form 41

Line 2. Enter the amount from page 2, Schedule A, line 15. The

Alabama Department of Revenue

amount entered on line 2 is the amount of income distributed to or dis-

Individual and Corporate Tax Division

tributable to the beneficiaries during the tax year, in accordance with

Alabama Form 41

Section 40-18-25(a). The Alabama income distribution deduction is

P. O. Box 327444

generally computed in accordance with 26 U.S.C. §§651 and 661, in-

Montgomery, AL 36132-7444

cluding any limitations, using amounts determined in accordance with

Make check or money order payable to Alabama Department of

Title 40, Chapter 18.

Revenue and enclose Form FDT-V when payment is mailed.

Line 3. The exemption allowed estates or trusts in computing Ala-

Returns without payments must be mailed to:

bama taxable income is $1,500, the amount allowed a single individ-

Alabama Department of Revenue

ual under Section 40-18-19. Nonresident estates or trusts receiving

Individual and Corporate Tax Division

income or conducting a business in Alabama and another state or

Alabama Form 41

states must allocate the exemption in accordance with 40-18-19.

P. O. Box 327440

Line 4. Enter the sum of lines 2 and 3.

Montgomery, AL 36132-7440

Line 5. Enter the amount that results from subtracting line 4 from

Extension. A five month extension of time for filing Form 41 will be

line 1.

granted automatically. However, the extension of time for filing the

Line 6. Using the worksheet on page 2, enter the amount of tax-

return is not an extension of time for payment of tax. The amount of

able income subject to the different tax rates and the amount of tax for

tax due must be paid on or before the original due date of the return

each tax rate. Enter on line 6 the total income tax due. The tax rates

without considering the extension of time to file the return.

are established by §40-18-5.

Estimate payments are not required by Alabama law. Voluntary

(If you are using an alternate tax computation, such as with an

estimated payments can be submitted with Form FDT-V.

ESBT, NOL, or CRAT/CRUT, indicate by checking the applicable box

Amended Returns. When filing an amended return include any

and attach a computation schedule.)

payments with the original return as a credit on the automatic exten-

Line 7a. In accordance with §40-18-25(c) resident estates and

sion payment line.

trusts are allowed a credit for taxes paid to another state, for tax years

beginning after December 31, 2004, if the resident estate or trust con-

Required Attachments. To be considered a complete return, the

ducts a trade or business both in Alabama and in one or more other

Alabama Fiduciary Income Tax Return must have attached a com-

states or territories. The credit is limited to the lesser of the tax actu-

plete copy of the federal Form 1041, U.S. Income Tax Return for Es-

tates and Trusts, with all federal K-1s, all statements and all

ally due to the other state or territory or the amount that would be due

attachments. Failure to attach a complete copy of the federal Form

on the same income computed at the income tax rate in Alabama.

When income tax is paid to more than one other state, the tax credit

1041 will constitute improper preparation, subjecting the return to

must be computed separately for each state. A copy of the return

treatment as a delinquent return. Voluminous depreciation and like

schedules may be omitted; however, a list of all omitted schedules

must be attached and must be provided if requested. In addition, for

as filed with the other state must be attached for the credit to be

the Alabama Form 41 to be considered a complete return, a properly

Line 7b. Enter the amount of capital credit the estate or trust is en-

considered properly substantiated.

completed Alabama Schedule K-1 or Schedule G must be attached for

titled to in accordance with, and as limited by, §§40-18-190 through

40-18-203. Attach Form KRCC for credit.

each person or tax entity that was a beneficiary at any time during the

Line 7c. Enter the amount of Alabama Income Tax withheld from

taxable year.

Form 41 - Schedule K-1 - Fiduciary Income Tax Return - 2014

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