Instructions For Form 1041-Es - Estimated Income Tax For Estates And Trusts

1041-ES

Estimated Income Tax for Estates

OMB No. 1545-0971

Form

and Trusts

1999

Department of the Treasury

Section references are to the Inter nal Revenue Code.

Internal Revenue Service

A Change To Note

However, if a return was not filed for

all its income currently is allowed a

1998 or that return did not cover a full

$300 exemption, even if it distributes

For tax years beginning in 1999, the

12 months, item 2 does not apply.

amounts other than income during the

estimated tax safe harbor that is

tax year. All other trusts are allowed a

For this purpose, include household

based on the tax shown on the prior

$100 exemption.

employment taxes when figuring the

year tax return is increased to 105%

tax shown on the tax return, but only

Line 10—Credits

of that amount if the adjusted gross

if either of the following is true:

income on that return is more than

For details on credits you may claim,

The estate or trust will have Federal

$150,000, and less than

⁄

of gross

see the instructions for line 2,

income tax withheld from any income,

income for 1998 or 1999 is from

Schedule G, Form 1041.

farming or fishing.

Line 12—Other Taxes

The estate or trust would be

Purpose of Form

required to make estimated tax

Enter any other taxes such as:

payments (to avoid a penalty) even if it

Use this package to figure and pay

Alternative minimum tax.

did not include household

estimated tax for an estate or trust.

Tax from recapture of investment

employment taxes when figuring its

Estimated tax is the amount of tax an

credit, low-income housing credit,

estimated tax.

estate or trust expects to owe for the

qualified electric vehicle credit, or the

year after subtracting the amount of

Exceptions. Estimated tax payments

Indian employment credit.

are not required from:

any tax withheld and the amount of

Tax on accumulation distribution of

any credits.

1. An estate of a domestic decedent

trusts.

This package is primarily for first-

or a domestic trust that had no tax

Tax figured under section 641(c) on

liability for the full 12-month 1998 tax

time filers. After the IRS receives the

income attributable to S corporation

first payment voucher, the estate or

year;

stock held by an electing small

trust will receive a 1041-ES package

2. A decedent’s estate for any tax

business trust. For details, see the line

with the name, address, and employer

year ending before the date that is 2

8 instructions on page 18 of the 1998

identification number (EIN) preprinted

years after the decedent’s death; or

Instructions for Form 1041.

on the vouchers for the next tax year.

3. A trust that was treated as owned

Unless the fiduciary is a financial

Include household employment

by the decedent if the trust will receive

institution subject to the magnetic

taxes on line 12 if either of the

the residue of the decedent’s estate

tape filing requirement, use the

following is true:

under the will (or if no will is admitted

preprinted vouchers. If you, as

The estate or trust will have Federal

to probate, the trust primarily

fiduciary, did not receive any 1999

income tax withheld from any income,

responsible for paying debts, taxes,

preprinted vouchers, use the vouchers

and expenses of administration) for

in this package. However, do not use

any tax year ending before the date

The estate or trust would be

the vouchers to notify the IRS of a

that is 2 years after the decedent’s

required to make estimated tax

change of address. If the fiduciary has

death.

payments (to avoid a penalty) even if it

moved, complete Form 8822, Change

did not include household

of Address, and send it to the service

How To Figure Estimated

employment taxes when figuring its

center where you file the estate’s or

Tax

estimated tax.

trust’s tax return.

Use the 1999 Estimated Tax

When To Make Estimated

Who Must Make Estimated

Worksheet and 1999 Tax Rate

Tax Payments

Schedule on page 3; and the estate’s

or trust’s 1998 tax return and

Trusts. The trust may pay all of its

Generally, a fiduciary of an estate or

instructions as a guide for figuring the

estimated tax by April 15, 1999, or in

trust must pay estimated tax if the

1999 estimated tax.

four equal installments due by the

estate or trust is expected to owe,

following dates:

If the estate or trust receives its

after subtracting its withholding and

income unevenly throughout the year,

credits, at least $1,000 in tax for 1999

1st installment

April 15, 1999

it may be able to lower or eliminate

and can expect its withholding and

2nd installment

June 15, 1999

the amount of its required estimated

credits to be less than the smaller of:

3rd installment

Sept. 15, 1999

tax payment for one or more periods

1. 90% of the tax shown on the

by using the annualized income

4th installment

Jan. 18, 2000

1999 tax return; or

installment method. See Pub. 505, Tax

Note: The trust does not have to make

2. The tax shown on the 1998 tax

Withholding and Estimated Tax, for

the payment due on January 18, 2000,

return (105% of that amount if the

details.

if it files the 1999 Form 1041 by

estate’s or trust’s adjusted gross

January 31, 2000, AND pays the entire

income (AGI) on that return is more

Instructions for 1999

balance due with the return.

than $150,000, and less than

⁄

Estimated Tax Worksheet

gross income for 1998 or 1999 is from

Estates. If the estate has adopted a

farming or fishing). To figure the

calendar year as its tax year, file using

Line 4—Exemption

the rules listed under Trusts above.

estate’s or trust’s AGI, see the

Decedent’s estate. A decedent’s

instructions for line 15b of Form 1041,

If the estate has adopted a fiscal

estate is allowed a $600 exemption.

U.S. Income Tax Return for Estates

year, it may pay all of its estimated tax

and Trusts.

Trust. A trust that is required by its

by the 15th day of the 4th month of its

governing trust instrument to distribute

1999 tax year or in four equal

Cat. No. 63550R

Instructions For Form 1041-Es - Estimated Income Tax For Estates And Trusts - 1999

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