Form 1041-ES Estimated Income Tax for Estates and Trusts

Estimated Income Tax for Estates and Trusts

1040-ES

Estimated Income Tax for Estates and Trusts

OMB: 1545-0971

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 1545-0971 can be found here:

Document [pdf]

Download: pdf | pdf

Form

1041-ES

Department of the Treasury
Internal Revenue Service

Estimated Income Tax for Estates
and Trusts
Section references are to the Internal Revenue Code.

Purpose of Form
Use this package to figure and pay
estimated tax for an estate or trust.
Estimated tax is the amount of tax an
estate or trust expects to owe for the
year after subtracting the amount of any
tax withheld and the amount of any
credits.
This package is primarily for firsttime filers. After the IRS receives the first
payment voucher, the estate or trust will
receive a 1041-ES package with the
name, address, and employer
identification number (EIN) preprinted on
the vouchers for the next tax year. Use
the preprinted vouchers unless the
Electronic Federal Tax Payment System
(EFTPS) is used. If you, as fiduciary, did
not receive any 2007 preprinted
vouchers, use the vouchers in this
package. However, do not use the
vouchers to notify the IRS of a change of
address. If the fiduciary has moved,
complete Form 8822, Change of
Address, and send it to the service
center where you file the estate’s or
trust’s tax return.

Who Must Make Estimated
Tax Payments
Generally, a fiduciary of an estate or trust
must pay estimated tax if the estate or
trust is expected to owe, after
subtracting its withholding and credits, at
least $1,000 in tax for 2007 and can
expect its withholding and credits to be
less than the smaller of:
1. 90% of the tax shown on the 2007
tax return, or
2. The tax shown on the 2006 tax
return (110% of that amount if the
estate’s or trust’s adjusted gross income
(AGI) on that return is more than
$150,000, and less than 2⁄ 3 of gross
income for 2006 or 2007 is from farming
or fishing). To figure the estate’s or
trust’s AGI, see the instructions for line
15b of Form 1041, U.S. Income Tax
Return for Estates and Trusts.
However, if a return was not filed for
2006 or that return did not cover a full
12 months, item 2 does not apply.
For this purpose, include household
employment taxes when figuring the tax
shown on the tax return, but only if:
● The estate or trust will have federal
income tax withheld from any income, or
● The estate or trust would be required
to make estimated tax payments (to
avoid a penalty) even if it did not include
household employment taxes when
figuring its estimated tax.
Exceptions. Estimated tax payments are
not required from:
1. An estate of a domestic decedent or
a domestic trust that had a full 12-month
2006 tax year and had no tax liability for
that year;

2. A decedent’s estate for any tax year
ending before the date that is 2 years
after the decedent’s death; or
3. A trust that was treated as owned
by the decedent if the trust will receive
the residue of the decedent’s estate
under the will (or if no will is admitted to
probate, the trust primarily responsible
for paying debts, taxes, and expenses of
administration) for any tax year ending
before the date that is 2 years after the
decedent’s death.

How To Figure Estimated
Tax
Use the 2007 Estimated Tax Worksheet
and 2007 Tax Rate Schedule on page 3
and the estate’s or trust’s 2006 tax
return and instructions as a guide for
figuring the 2007 estimated tax.
If the estate or trust receives its
income unevenly throughout the year, it
may be able to lower or eliminate the
amount of its required estimated tax
payment for one or more periods by
using the annualized income installment
method. See Pub. 505, Tax Withholding
and Estimated Tax, for details.

Instructions for 2007
Estimated Tax Worksheet
Line 4—Exemption
Decedents’ estates. A decedent’s
estate is allowed a $600 exemption.
Trusts required to distribute all income
currently. A trust whose governing
instrument requires that all income be
distributed currently is allowed a $300
exemption, even if it distributed amounts
other than income during the tax year.
Qualified disability trusts. A qualified
disability trust is allowed a $3,400
exemption if the trust’s modified AGI is
less than or equal to $156,400. If its
modified AGI (as defined in the
Instructions for Form 1041) exceeds
$156,400, complete the Exemption
Worksheet for Qualified Disability Trusts
Only on page 4 to figure the amount of
the trust’s exemption.
A qualified disability trust is any trust:
1. Described in 42 U.S.C.
1396p(c)(2)(B)(iv) and established solely
for the benefit of an individual under 65
years of age who is disabled, and
2. All of the beneficiaries of which are
determined by the Commissioner of
Social Security to have been disabled for
some part of the tax year within the
meaning of 42 U.S.C. 1382c(a)(3).
A trust will not fail to meet 2 above
just because the trust’s corpus may
revert to a person who is not disabled
after the trust ceases to have any
disabled beneficiaries.

Cat. No. 63550R

OMB No. 1545-0971

2007

Qualified funeral trusts. No exemption
is allowed to a qualified funeral trust.
All other trusts. A trust not described
above is allowed a $100 exemption.

Line 7—Tax
Electing Alaska Native Settlement
Trusts. Multiply line 6 by 10% to figure
the amount of tax to enter on line 7,
unless the trust is expected to have
qualified dividends or net capital gain for
2007. If the trust is expected to have
qualified dividends or net capital gain,
use Part IV of Schedule D of Form
1041-N as a worksheet to figure the tax
for 2007.

Line 10—Credits
For details on credits the estate or trust
may claim, see the instructions for lines
2 and 3, Schedule G, Form 1041.

Line 12—Other Taxes
Enter any other taxes such as:
● Tax from recapture of investment
credit, low-income housing credit,
qualified electric vehicle credit, the Indian
employment credit, the new markets
credit, or the credit for
employer-provided child care facilities.
● Tax on accumulation distribution of
trusts.
● Tax figured under section 641(c) on
income attributable to S corporation
stock held by an electing small business
trust. For details, see Electing Small
Business Trusts in the 2006 Instructions
for Form 1041.
Include household employment taxes
on line 12 if:
● The estate or trust will have federal
income tax withheld from any income, or
● The estate or trust would be required
to make estimated tax payments (to
avoid a penalty) even if it did not include
household employment taxes when
figuring its estimated tax.

When To Make Estimated
Tax Payments
Trusts. The trust may pay all of its
estimated tax by April 16, 2007, or in
four equal installments due by the
following dates:
1st installment
April 16, 2007
2nd installment
June 15, 2007
3rd installment
Sept. 17, 2007
4th installment
Jan. 15, 2008
If the trust has a short tax year, see
Notice 87-32, 1987-1 C.B. 477, for the
estimated tax due dates and other
information.
The trust does not have to make
TIP
the payment due on January 15,
2008, if it files the 2007 Form
1041 by January 31, 2008, and pays the
entire balance due with the return.

Estates. If the estate has adopted a
calendar year as its tax year, file using
the rules listed under Trusts above.
If the estate has adopted a fiscal year,
it may pay all of its estimated tax by the
15th day of the 4th month of its 2007 tax
year or in four equal installments due on
the 15th day of the 4th, 6th, and 9th
month of the 2007 tax year, and the 1st
month of the following tax year.
The estate does not have to
TIP
make the payment due on the
15th day of the 1st month
following the close of the fiscal year if it
files the 2007 Form 1041 by the last day
of the 1st month following the close of
the fiscal year, and pays the entire
balance due with the return.
If any date falls on a Saturday,
Sunday, or legal holiday, the installment
is due on the next business day.
If, after March 31, 2007, or after the
last day of the 3rd month of the fiscal
tax year, the estate or trust has a large
enough change in income to require the
payment of estimated tax, figure the
amount of each installment by using the
annualized income installment method,
as explained in Pub. 505.
Farmers and fishermen. If at least 2⁄ 3 of
gross income for 2006 or 2007 is from
farming or fishing, do one of the
following:
● Pay the total estimated tax (line 16 of
the Worksheet) by January 15, 2008, or
● File Form 1041 for 2007 by March 3,
2008, and pay the total tax due. In this
case, do not make estimated tax
payments for 2007.
For fiscal year estates, pay the total
estimated tax by the 15th day of the 1st
month following the close of the tax
year, or file Form 1041 by the 1st day of
the 3rd month following the close of the
tax year and pay the total tax due.

money order. Do not include any balance
due on the 2006 Form 1041 with the
check for 2007 estimated tax. Fill in the
Record of Estimated Tax Payments on
page 3 for your files.

How To Complete and Use
the Payment Vouchers

Amending Estimated Tax
Payments

Each payment voucher has the date
when the voucher is due for calendar
year estates and trusts. Be sure to use
the correct voucher. Complete and send
in the voucher only if you are making a
payment. To complete your voucher:
● Enter the estate’s or trust’s name and
EIN, and the fiduciary’s name, title, and
address in the spaces provided on the
payment voucher.
● Enter in the payment box of the
voucher only the amount the estate or
trust is sending in. When making
payments of estimated tax, be sure to
take into account any 2006 overpayment
that the estate or trust chose to credit
against its 2007 tax, but do not include
the overpayment amount in this box.
● Enclose, but do not staple or attach, a
check or money order with the payment
voucher. Make the check or money order
payable to “United States Treasury.”
Write the estate’s or trust’s EIN and
“2007 Form 1041-ES” on the check or

To change or amend the estate’s or
trust’s estimated payments, refigure the
total estimated payments due (line 16 of
the worksheet on page 3). Then use the
worksheets under Change in estimated
tax in Pub. 505 to figure the payment
due for each remaining period. If an
estimated tax payment for a previous
period is less than 1⁄ 4 of the amended
estimated tax, the estate or trust may
owe a penalty when its return is filed.

Page 2

Electronic Deposits
A financial institution that maintains a
Treasury Tax and Loan (TT&L) account,
and administers at least 200 taxable
trusts that are required to pay estimated
tax, may be required to deposit the
estimated tax payments electronically
using the Electronic Federal Tax
Payment System (EFTPS). The electronic
deposit requirement applies in 2007 if:
● The total deposits of depository taxes
(such as estimated, employment, or
excise tax) in 2005 were more than
$200,000, or
● The fiduciary (on behalf of a trust) was
required to use EFTPS in 2006.
If the fiduciary is required to use
EFTPS on behalf of a trust and fails to
do so, it may be subject to a 10%
penalty.
A fiduciary that is not required to make
electronic deposits of estimated tax on
behalf of a trust may either use the
payment vouchers or voluntarily
participate in EFTPS. To enroll in or get
more information about EFTPS, call
1-800-555-4477. To enroll online, visit
www.EFTPS.gov.

Where To File
Mail the payment voucher to:
Internal Revenue Service
P.O. Box 1219
Charlotte, NC 28201-1219
Do not send the payment voucher to the
Internal Revenue Service Center where
you file Form 1041.
Only the U.S. Postal Service can
deliver to the above address.

When a Penalty Is Applied
In some cases, the estate or trust may
owe a penalty when it files its return. The
penalty is imposed on each
underpayment for the number of days it
remains unpaid. A penalty may be
applied if the estate or trust did not pay
enough estimated tax or it did not make
the payments on time or in the required
amount. A penalty may apply even if the
estate or trust has an overpayment on its
tax return.

The penalty may be waived under
certain conditions. See Pub. 505 for
details.

Certain Payments of
Estimated Tax Treated as
Paid by Beneficiary
The fiduciary (or executor, for the final
year of the estate) may elect to have any
portion of its estimated tax payments
treated as made by a beneficiary (and
not as payments made by the estate or
trust).
Such an amount is treated as a
payment of the estimated tax made by
the beneficiary on the January 15th
following the end of the tax year.
Time for making election. The fiduciary
must make the election on the 2007
Form 1041-T, Allocation of Estimated
Tax Payments to Beneficiaries. The
election must be filed on or before the
65th day after the close of the estate’s
or trust’s tax year. For details, see
section 643(g).
Paperwork Reduction Act Notice. We
ask for the information on the payment
vouchers to carry out the Internal
Revenue laws of the United States. You
are required to give us the information.
We need it to ensure that you are
complying with these laws and to allow
us to figure and collect the right amount
of tax.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions must
be retained as long as their contents
may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103.
The time needed to complete the
worksheets and prepare and file the
payment vouchers will vary depending
on individual circumstances. The
estimated average time is:
Recordkeeping
19 min.
Learning about the
law or the form
15 min.
Preparing the form
1 hr., 43 min.
Copying, assembling,
and sending the form
to the IRS
1 hr.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this package
simpler, we would be happy to hear from
you. You can write to the Internal
Revenue Service, Tax Products
Coordinating Committee,
SE:W:CAR:MP:T:T:SP,
1111 Constitution Ave. NW, IR-6406,
Washington, DC 20224. Do not send the
payment vouchers to this address.
Instead, see Where To File above.

2007 Estimated Tax Worksheet
1

Keep for Your Records
1

Enter adjusted total income expected in 2007

Enter any expected income distribution deduction

Enter any estate tax deduction

Enter exemption (see instructions)

Add lines 2 through 4

Taxable income of estate or trust. Subtract line 5 from line 1

Tax. Figure your tax on line 6 by using the 2007 Tax Rate Schedule below. (If the estate or trust expects a net
capital gain or qualified dividends and line 6 is more than zero, use the Tax Computation Worksheet Using Maximum
Capital Gains Rates on page 4, to figure the tax.) Electing Alaska Native Settlement Trusts, see instructions

Alternative minimum tax

Add lines 7 and 8. Include any tax on lump-sum distributions from Form 4972

Credits (see instructions)

Subtract line 10 from line 9. If zero or less, enter -0-

Other taxes (see instructions)

2007 estimated tax. Add lines 11 and 12. Reduce this total by any credit you expect to claim on Form 4136
14a
14a Enter 90% of line 13 (662⁄ 3 % for farmers and fishermen)
b Enter the tax shown on the 2006 Form 1041 (110% of that amount if the estate’s or trust’s AGI on that
return is more than $150,000, and less than 2⁄ 3 of gross income for 2006 or 2007 is from farming or fishing)

14b
14c

c Required annual payment. Enter the smaller of line 14a or 14b
15

Income tax withheld and estimated to be withheld during 2007 and other refundable credits

Subtract line 15 from line 14c

(Note: If line 13 minus line 15 is less than $1,000, the estate or trust is not required to make estimated tax payments.)
17

Installment amount. If the first required payment is due April 16, 2007, enter 1⁄ 4 of line 16 (minus any 2006 overpayment that you
are applying to this installment) here and on the payment line of the voucher(s). You may round off cents to the nearest whole dollar

2007 Tax Rate Schedule
Estates and trusts, if line 6 of the Estimated Tax Worksheet above is:
Over—
$0
2,150
5,000
7,650
10,450

But not over—
$2,150
5,000
7,650
10,450

The tax is:
$322.50
1,035.00
1,777.00
2,701.00

1
1
1
1

15%
25%
28%
33%
35%

Of the amount over—
$0
2,150
5,000
7,650
10,450

Record of Estimated Tax Payments
Payment
no.

(b) Check or
money order
number

(a) Date

(d) 2006 overpayment
credit applied

(e) Total amount paid
and credited (add (c)
and (d))

1
2
3
4
Total

Page 3

Form

Tear off here

1041-ES
Department of the Treasury
Internal Revenue Service

2007

Payment
Voucher

File only if the estate or trust is making a payment of estimated tax. Return this voucher
with check or money order payable to “United States Treasury.” Write the estate’s or
trust’s EIN and “2007 Form 1041-ES” on the check or money order. Do not send cash.
Enclose, but do not staple or attach, the payment with this voucher.

OMB No. 1545-0971

Calendar year—Due Jan. 15, 2008
Amount of estimated tax you are paying
by check or
Dollars
Cents
money
order.

Employer identification number
Fiscal year filers–enter year ending

(month and year)

Type or print

Name of estate or trust
Name and title of fiduciary
Address of fiduciary (number, street, and room or suite no.)
City, state, and ZIP code

2007 Tax Computation Worksheet Using Maximum Capital Gains Rates (Use this computation if the estate or trust
expects a net capital gain or qualified dividends and line 6 of the 2007 Estimated Tax Worksheet is more than zero.)
Caution: Do not include any amounts allocable to the beneficiaries of the estate or trust on lines 2, 3, and 4 below.
1
1 Enter taxable income (from line 6 of the Worksheet on page 3)
2 Enter the qualified dividends and net capital gain expected for 2007 (Reminder:
Do not include any qualified dividends or capital gain from the disposition of
property held for investment that you elect to include in investment income for
2
investment interest expense purposes.)
3
3 Enter the 28% rate gain expected for 2007
4
4 Enter the unrecaptured section 1250 gain expected for 2007
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

Add lines 3 and 4 and enter the smaller of that sum or the amount of net
5
capital gain included in line 2
Subtract line 5 from line 2. If zero or less, enter -0Subtract line 6 from line 1. If zero or less, enter -0Enter the smaller of line 1 or $2,150
9
Enter the smaller of line 7 or line 8
10
Subtract line 2 from line 1. If zero or less, enter -011
Enter the larger of line 9 or line 10
Tax on amount on line 11 from the 2007 Tax Rate Schedule
Note: If the amounts on lines 8 and 9 are the same, skip lines 13 through 16 and go to line 17.
13
Enter the amount from line 8
14
Enter the amount from line 7
15
Subtract line 14 from line 13. If zero or less, enter -0Multiply line 15 by 5% (.05)
Note: If the amounts on lines 1 and 8 are the same, skip lines 17 through 30 and go to line 31.
17
Enter the smaller of line 1 or line 6
18
Enter the amount from line 15
19
Subtract line 18 from line 17
Multiply line 19 by 15% (.15)
Note: If line 5 is zero or blank, skip lines 21 through 30 and go to line 31.
21
Enter the smaller of line 2 or line 4
22
Add lines 2 and 11
23
Enter the amount from line 1
24
Subtract line 23 from line 22. If zero or less, enter -025
Subtract line 24 from line 21. If zero or less, enter -0Multiply line 25 by 25% (.25)
Note: If line 3 is zero or blank, skip lines 27 through 30 and go to line 31.
27
Enter the amount from line 1
28
Add lines 11, 15, 19, and 25
29
Subtract line 28 from line 27
Multiply line 29 by 28% (.28)
Add lines 12, 16, 20, 26, and 30
Tax on the amount on line 1 from the 2007 Tax Rate Schedule
Tax. Enter the smaller of line 31 or line 32 here and on line 7 of the Worksheet on page 3

Exemption Worksheet for Qualified Disability Trusts Only

6
7
8

30
31
32
33

Keep for Your Records

Note: If the trust’s modified AGI is less than or equal to $156,400, enter $3,400 on line 4 of the 2007 Estimated Tax Worksheet
on page 3. Otherwise, complete the worksheet below to figure the trust’s exemption.
1. Maximum exemption
2. Enter the trust’s modified AGI
2.
3. Threshold amount
3.
4. Subtract line 3 from line 2
4.
Note: If line 4 is more than $122,500, stop here. The trust’s exemption is zero.

$156,400

5. Divide line 4 by $2,500. If the result is not a whole number, increase it to
the next higher whole number (e.g., increase 0.0004 to 1)
5.
6. Multiply line 5 by 2% (.02) and enter the result as a decimal
7. Multiply line 1 by line 6
8. Exemption. Subtract line 7 from line 1. Enter the result here and line 4 of the 2007 Estimated Tax Worksheet on page 3.

Page 4

6.
7.
8.

$3,400

Form

1041-ES
Department of the Treasury
Internal Revenue Service

2007

Payment
Voucher

OMB No. 1545-0971

Calendar year—Due Sept. 17, 2007
Amount of estimated tax you are paying
by check or
Dollars
Cents
money
order.

Employer identification number

(month and year)

Type or print

Fiscal year filers–enter year ending
Name of estate or trust
Name and title of fiduciary
Address of fiduciary (number, street, and room or suite no.)
City, state, and ZIP code

Form

Tear off here

1041-ES
Department of the Treasury
Internal Revenue Service

2007

Payment
Voucher

OMB No. 1545-0971

Calendar year—Due June 15, 2007
Amount of estimated tax you are paying
by check or
Dollars
Cents
money
order.

Employer identification number

(month and year)

Type or print

Fiscal year filers–enter year ending
Name of estate or trust
Name and title of fiduciary
Address of fiduciary (number, street, and room or suite no.)
City, state, and ZIP code

Form

Tear off here

1041-ES
Department of the Treasury
Internal Revenue Service

2007

Payment
Voucher

OMB No. 1545-0971

Calendar year—Due April 16, 2007
Amount of estimated tax you are paying
by check or
Dollars
Cents
money
order.

Employer identification number

(month and year)

Type or print

Fiscal year filers–enter year ending
Name of estate or trust
Name and title of fiduciary
Address of fiduciary (number, street, and room or suite no.)
City, state, and ZIP code

Page 5

File Type	application/pdf
File Title	2007 Form 1041-ES
Subject	Estimated Income Tax for Estates and trusts
Author	SE:W:CAR:MP
File Modified	2007-02-12
File Created	2007-02-09