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

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

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

cluding any limitations, using amounts determined in accordance with

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

Title 40, Chapter 18.

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

Line 3. The personal exemption allowed estates or trusts in com-

the amount to be refunded.

puting Alabama taxable income is $1,500, the amount allowed a sin-

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

gle individual under Section 40-18-19. Nonresident estates or trusts

timated tax.

receiving income or conducting a business in Alabama and another

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

state or states must allocate the personal exemption in accordance

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

with 40-18-19.

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

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

provided in 26 U.S.C. §6621.

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

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

line 1.

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

Line 6. Using the worksheet below enter the amount of taxable in-

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

come subject to the different tax rates and the amount of tax for each

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

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

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

rates are established by §40-18-5.

month up to a maximum of 25%.

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

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

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

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

a computation schedule.)

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

via electronic funds please check the indicator box.

Tax Computation Worksheet

Schedule A – Computation of Alabama

at 2% (on first $500, or

Income Distribution Deduction.

fraction thereof, of

$______________ Alabama Taxable Income) . ______________

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

at 4% (on next $2500, or

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

fraction thereof, of

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

$______________ Alabama Taxable Income) . ______________

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

at 5% (on all over $3000 of

able year.

$______________ Alabama Taxable Income) . ______________

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

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

Total Income Tax Due. . . ______________

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

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

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

tributed to any beneficiary or owner during the taxable year.

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

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

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

puting Alabama taxable income for the estate or trust.

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

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

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

above. Enter adjustments that would increase the Alabama DNI as a

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

positive amount. Enter adjustments that would decrease the Alabama

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

DNI as a negative amount. Please attach a complete explanation for

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

each of the adjustments entered in line 6.

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

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

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

lines 8 through 16 of Schedule B adjust Alabama DNI and compute

considered properly substantiated.

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

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

bama Income Distribution Deduction is generally computed in accor-

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

dance with 26 U.S.C. §§651 and 661.

40-18-203.

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

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

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

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

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

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

income tax law.

return.

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

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

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

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

tributed or not.

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

cation number. Attach a schedule showing the payments, payers, and

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

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

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

posite payment has been made for the taxpayer.

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

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

distributions.

ment allocated to the beneficiary.

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

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

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

7d, 7e, and 7f.

on line 11.

Form 41 - Schedule K-1 Fiduciary Income Tax Return Instructions - 2013 Page 2

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