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

Forms W-2 and/or 1099. Attach a copy of Form W-2 or Form 1099.

Line 5. Enter the amount of tax exempt interest excluded in com-

Line 7d. Enter any amount paid on or before the due date of the

puting Alabama taxable income for the estate or trust.

return.

Line 6. Enter other adjustments not addressed by lines 2, 4, or 5,

Line 7e. Enter the amount paid on behalf of the taxpayer on Ala-

above. Enter adjustments that would increase the Alabama Distrib-

bama Form PTE-C (Nonresident Composite Payment Return). Also

utable Net Income (DNI) as a positive amount. Enter adjustments that

provide on line 7e the payer and the payer’s federal employer identi-

would decrease the Alabama DNI as a negative amount. Please at-

fication number. Attach a schedule showing the payments, payers,

tach a complete explanation for each of the adjustments entered in

and payer’s federal employer identification number, if more than one

line 6.

composite payment has been made for the taxpayer.

Line 7. Enter the sum of lines 3 through 6. The computations of

Line 7f. Enter as a negative number the amount of composite pay-

lines 8 through 15 of Schedule A adjust Alabama DNI and compute

ment allocated to the beneficiary.

certain limits for the Alabama Income Distribution Deduction. The Ala-

Line 8. Enter the sum of the amounts entered on lines 7a, 7b, 7c,

bama Income Distribution Deduction is generally computed in accor-

7d, 7e, and 7f.

dance with 26 U.S.C. §§651 and 661.

Line 9. Subtract line 8 from line 6 and enter the difference on line

Line 8. This line applies to complex trusts only. Enter the ac-

9. If line 6 is larger than line 8, enter, as a positive number, the amount

counting income of the trust for the tax year determined under the

of tax due. If line 8 is larger than line 6, enter, as a negative number,

terms of the governing instrument, applicable local law, and Alabama

the amount to be refunded.

income tax law.

Line 10a. Enter the amount of refund to be carried to your 2014

Line 9. This line applies to simple and complex trusts. Enter the

estimated tax.

amount of income required to be distributed currently, whether dis-

Line 10b. Enter the amount of interest due on the balance of tax

tributed or not.

Line 10. This line applies to only decedent’s estates or complex

trusts. These distributions consist of any other amounts paid, credited,

Tax Computation Worksheet

at 2% (on first $500, or

or required to be distributed and are referred to as second tier

fraction thereof, of

distributions.

$______________ Alabama Taxable Income) . ______________

Line 11. Enter the sum of lines 9 and 10.

at 4% (on next $2500, or

Line 12. Enter the amount of Alabama tax-exempt income in-

fraction thereof, of

cluded on line 11.

$______________ Alabama Taxable Income) . ______________

Line 13. Subtract the line 12 from line 11.

Line 14. Subtract line 5 from line 7. Enter zero if equal to zero or

at 5% (on all over $3000 of

$______________ Alabama Taxable Income) . ______________

less.

Line 15. Enter the smallest of the amounts entered on lines 13 or

Total Income Tax Due. . . ______________

14, but not less than zero.

due. This is to be computed from the due date (without extension) of

this return to the date paid. The Alabama interest rate is the same as

Schedule B – Computation of Alabama

provided in 26 U.S.C. §6621.

Adjusted Total Income.

If trust is a grantor trust, Schedule B is not required to be com-

Line 10c. If this return is not filed on or before the due date (with

pleted.

extension), enter a failure to timely file penalty of 10% of the tax due

Lines 1 through 8 – For the income items identified by the line

on Line 9 or $50, whichever is greater. This penalty is due even if the

titles: (Do not include net operating losses.)

return indicates a refund or zero balance. Tax amounts not paid by the

– Enter in column A the amount of income reported on the fed-

due date will be subject to a failure to timely pay penalty of 1% per

eral Form 1041 return.

month up to a maximum of 25%.

– Enter in column B the amount the income reported in column

Line 10d. Enter the total of lines 10a through 10c.

A must be adjusted to result in the income reported in column C. In-

Line 11. Enter the sum of lines 10d and 9. If amount owed, FORM

FDT-V MUST ACCOMPANY PAYMENT. If payment has been made

creases should be indicated as a positive amount, and decreases

via electronic funds please check the indicator box.

should be shown as a negative amount. Supporting documents will

be required for Column B adjustments.

– Enter in column C the amount of income to be reported in ac-

Schedule A – Computation of Alabama

cordance with Alabama income tax law.

Income Distribution Deduction.

Net Alabama Capital Gain or (Loss). Line 4, column C, must

Line 1. Enter the amount from page 1, line 1.

equal the net Alabama capital gain or (loss) for the tax year, computed

Line 2. Enter the amount of gain from the sale of capital assets,

in accordance with §§40-18-6, 7, and 8. Please provide a complete

only if the gain was allocated to corpus and was not paid, credited, or

explanation and computation for the total amount of gains and losses

required to be distributed to any beneficiary or owner during the tax-

reported on this line – specifically identify those amounts not allocated

able year.

to trust corpus. Summaries of the transactions can be provided if a

Line 3. Subtract line 2 from line 1, and enter the difference.

complete listing of the transactions would result in a large and bulky

Line 4. Enter, as a positive amount, the amount of loss from the

attachment – but the complete listings must be promptly provided per

sale of capital assets, only if the loss was not considered in the de-

written request by The Alabama Department of Revenue.

termination of the amount to be paid, credited, or required to be dis-

Non-Alabama Source Income. Nonresident estates or trusts

tributed to any beneficiary or owner during the taxable year.

must report as Alabama source income that income earned from prop-

Form 41 - Schedule K-1 - Fiduciary Income Tax Return - 2014 Page 2

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