Qualified Dividends Tax Worksheet

Page 27 of 37

12:20 - 25-SEP-2009

Instructions for Form 1041 and Schedules A, B, G, J, and K-1

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

1,905.50

Complex trusts. If the second tier
distributions exceed the DNI allocable
to the second tier, the trust may have
an accumulation distribution. See the
line 11 instructions below.

Line 11—Total Distributions
If line 11 is more than line 8, and you
are filing for a complex trust that has
previously accumulated income, see
the instructions on page 30 to see if
you must complete Schedule J (Form
1041).

Line 12—Adjustment for
Tax-Exempt Income
In figuring the income distribution
deduction, the estate or trust is not
allowed a deduction for any item of the
DNI that is not included in the gross
income of the estate or trust. Thus, for
purposes of figuring the allowable
income distribution deduction, the DNI
(line 7) is figured without regard to any
tax-exempt interest.
If tax-exempt interest is the only
tax-exempt income included in the total
distributions (line 11), and the DNI (line
7) is less than or equal to line 11, then
enter on line 12 the amount from line 2.
If tax-exempt interest is the only
tax-exempt income included in the total
distributions (line 11), and the DNI is
more than line 11 (that is, the estate or
trust made a distribution that is less
than the DNI), then figure the
adjustment by multiplying line 2 by a
fraction, the numerator of which is the
total distributions (line 11), and the

denominator of which is the DNI (line
7). Enter the result on line 12.

2009 Tax Rate Schedule
If taxable
income
is:

If line 11 includes tax-exempt
income other than tax-exempt interest,
figure line 12 by subtracting the total of
the following from tax-exempt income
included on line 11:
1. The charitable contribution
deduction allocable to such tax-exempt
income, and

Over —

But not
over —

$0
2,300
5,350
8,200
11,150

2. Expenses allocable to tax-exempt
income.

$2,300
5,350
8,200
11,150
-----

Its tax is:
15%
$345.00 + 25%
1,107.50 + 28%
1,909.50 + 33%
2,879.00 + 35%

Schedule D (Form 1041) and
Schedule D Tax Worksheet. Use
Part V of Schedule D (Form 1041) or
the Schedule D Tax Worksheet,
whichever is applicable, to figure the
estate’s or trust’s tax if the estate or
trust files Schedule D (Form 1041) and
has:
• A net capital gain and any taxable
income, or
• Qualified dividends on line 2b(2) of
Form 1041 and any taxable income.
Qualified Dividends Tax Worksheet.
If you do not have to complete Part I or
Part II of Schedule D and the estate or
trust has an amount entered on line
2b(2) of Form 1041 and any taxable
income (line 22), then figure the
estate’s or trust’s tax using the
worksheet below and enter the tax on
line 1a.
Note. You must reduce the amount
you enter on line 2b(2) of Form 1041 by
the portion of the section 691(c)
deduction claimed on line 19 of Form
1041 if the estate or trust received
qualified dividends that were IRD.

Expenses that are directly allocable
to tax-exempt income are allocated only
to tax-exempt income. A reasonable
proportion of expenses indirectly
allocable to both tax-exempt income
and other income must be allocated to
each class of income.

Schedule G—Tax
Computation
Line 1a
2009 tax rate schedule. For tax years
beginning in 2009, figure the tax using
the Tax Rate Schedule below and enter
the tax on line 1a. However, see the
Instructions for Schedule D (Form
1041) and the Qualified Dividends Tax
Worksheet below.

Qualified Dividends Tax Worksheet—Schedule G, line 1a

Keep for Your Records

Caution: Do not use this worksheet if the estate or trust must complete Schedule D (Form 1041).
1. Enter the amount from Form 1041, line 22 . . . . . . . . . . . . . . . . . . .
2. Enter the amount from Form 1041, line 2b(2) . . . . . . . .
2.
3. If you are claiming investment interest expense on Form
4952, enter the amount from line 4g; otherwise enter -03.
4. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . .
5. Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . .
6. Enter the smaller of the amount on line 1 or $2,300 . . . . . . . . . . . .
7. Is the amount on line 5 equal to or more than the amount on line 6?

8.
9.

10.
11.
12.
13.
14.
15.
16.

.......

1.

.......
.......
.......

4.
5.
6.

Yes. Skip lines 7 and 8; go to line 9 and check the ‘‘No’’ box.
No. Enter the amount from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
Are the amounts on lines 4 and 8 the same?
Yes. Skip lines 9 through 12; go to line 13.
No. Enter the smaller of line 1 or line 4 . . . . . . . . . . . . . . . . . . . . . . . .
9.
Enter the amount from line 8 (if line 8 is blank, enter -0-) . . . . . . . . . . . . . . . . 10.
Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
Multiply line 11 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure the tax on the amount on line 5. Use the 2009 Tax Rate Schedule . . . . . . . . . . . . . . .
Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure the tax on the amount on line 1. Use the 2009 Tax Rate Schedule . . . . . . . . . . . . . . .
Tax on all taxable income. Enter the smaller of line 14 or line 15 here and on Sch. G, line 1a

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Of the
amount
over —
$0
2,300
5,350
8,200
11,150

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12.
13.
14.
15.
16.