Form 1041-ES Estimated Income Taxes for Estates and Trusts

Estimated Income Tax for Estates and Trusts

Form 1041-ES 2010

Estimated Income Tax for Estates and Trusts

OMB: 1545-0971

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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.

What’s New
For tax years that begin in 2010, the
exemption deduction for qualified disability
trusts is not subject to a phaseout.

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 2010
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 2010 and can expect its withholding
and credits to be less than the smaller of:
1. 90% of the tax shown on the 2010 tax
return, or
2. The tax shown on the 2009 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 2009 or 2010 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
2009 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.

OMB No. 1545-0971

2010

1. An estate of a domestic decedent or a
domestic trust that had a full 12-month
2009 tax year and had no tax liability for
that year;

Qualified funeral trusts. No exemption is
allowed to a qualified funeral trust.

2. A decedent’s estate for any tax year
ending before the date that is 2 years after
the decedent’s death; or

Line 7—Tax

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 2010 Estimated Tax Worksheet and
2010 Tax Rate Schedule on page 3 and the
estate’s or trust’s 2009 tax return and
instructions as a guide for figuring the 2010
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.

All other trusts. A trust not described
above is allowed a $100 exemption.

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 2010. Use Part IV of
Schedule D of Form 1041-N (Rev.
December 2008) as a worksheet to figure
the 2010 tax on qualified dividends or net
capital gain.

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.

Line 4—Exemption

● 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 2009 Instructions for Form
1041.

Decedents’ estates. A decedent’s estate is
allowed a $600 exemption.

Include household employment taxes on
line 12 if:

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.

● The estate or trust will have federal
income tax withheld from any income, or

Instructions for 2010
Estimated Tax Worksheet

Qualified disability trusts. A qualified
disability trust is allowed a $3,650
exemption.

● 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.

A qualified disability trust is any trust:

When To Make Estimated
Tax Payments

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

Trusts. The trust may pay all of its
estimated tax by April 15, 2010, or in four
equal installments due by the following
dates:

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).

1st installment
2nd installment
3rd installment
4th installment

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.

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.

Exceptions. Estimated tax payments are
not required from:

Cat. No. 63550R

April
June
Sept.
Jan.

15,
15,
15,
18,

2010
2010
2010
2011

The trust does not have to make
the payment due on January 18,
2011, if it files the 2010 Form 1041
by January 31, 2011, and pays the entire
balance due with the return.
TIP

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 2010 tax year or
in four equal installments due on the 15th
day of the 4th, 6th, and 9th month of the
2010 tax year, and the 1st month of the
following tax year.
The estate does not have to make
the payment due on the 15th day
of the 1st month following the
close of the fiscal year if it files the 2010
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.
TIP

If any date falls on a Saturday, Sunday,
or legal holiday, the installment is due on
the next business day.
If, after March 31, 2010, 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 2009 or 2010 is from
farming or fishing, do one of the following:
● Pay the total estimated tax (line 16 of the
Worksheet) by January 18, 2011, or
● File Form 1041 for 2010 by
March 1, 2011, and pay the total tax due.
In this case, do not make estimated tax
payments for 2010.
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.

How To Complete and Use
the Payment Vouchers
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 2009 overpayment that the estate or
trust chose to credit against its 2010 tax,
but do not include the overpayment amount
in this box.

Page 2

● 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 “2010 Form
1041-ES” on the check or money order. Do
not include any balance due on the 2009
Form 1041 with the check for 2010
estimated tax. Fill in the Record of
Estimated Tax Payments on page 3 for your
files.

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 EFTPS.
The electronic deposit requirement applies
in 2010 if:
● The total deposits of depository taxes
(such as estimated, employment, or excise
tax) in 2008 were more than $200,000, or
● The fiduciary (on behalf of a trust) was
required to use EFTPS in 2009.
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 804526
Cincinnati, OH 45280-4526
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.

Amending Estimated Tax
Payments
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 Worksheet
2-7 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.

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 2010 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-6526,
Washington, DC 20224. Do not send the
payment vouchers to this address. Instead,
see Where To File above.

2010 Estimated Tax Worksheet

Keep for Your Records
1

Enter adjusted total income expected in 2010

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 2010 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)

2010 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 2009 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 2009 or 2010 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 2010 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 15, 2010, enter 1⁄4 of line 16 (minus any 2009 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.

2010 Tax Rate Schedule
Estates and trusts, if line 6 of the Estimated Tax Worksheet above is:
Over—
$0
2,300
5,350
8,200
11,200

But not over—
$2,300
5,350
8,200
11,200

The tax is:
$345.00
1,107.50
1,905.50
2,895.50

15%
25%
28%
33%
35%

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

Record of Estimated Tax Payments
Payment
no.

(b) Check or
money order
number

(a) Date

(d) 2009 overpayment
credit applied

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

1
2
3
4
Total

䊳

Page 3

Form

Tear off here

1041-ES
Department of the Treasury
Internal Revenue Service

2010

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 “2010 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. 18, 2011
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

2010 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 2010 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 2010
(Reminder: Do not include any qualified dividends or capital gain from the
disposition of property held for investment that you elect to include in
2
investment income for investment interest expense purposes.)
3
3 Enter the 28% rate gain expected for 2010
4
4 Enter the unrecaptured section 1250 gain expected for 2010
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

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 $2,300
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
䊳
Tax on amount on line 11 from the 2010 Tax Rate Schedule
Note: If the amounts on lines 8 and 9 are the same, skip lines 13 through 15 and go to line 16.
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 -0Note: If the amounts on lines 1 and 8 are the same, skip lines 16 through 29 and go to line 30.
16
Enter the smaller of line 1 or line 6
17
Enter the amount from line 15 (if line 15 is blank, enter -0-)
18
Subtract line 17 from line 16
䊳
Multiply line 18 by 15% (.15)
Note: If line 5 is zero or blank, skip lines 20 through 29 and go to line 30.
20
Enter the smaller of line 2 or line 4
21
Add lines 2 and 11
22
Enter the amount from line 1
23
Subtract line 22 from line 21. If zero or less, enter -024
Subtract line 23 from line 20. If zero or less, enter -0䊳
Multiply line 24 by 25% (.25)
Note: If line 3 is zero or blank, skip lines 26 through 29 and go to line 30.
26
Enter the amount from line 1
27
Add lines 11, 15, 18, and 24
28
Subtract line 27 from line 26
䊳
Multiply line 28 by 28% (.28)
Add lines 12, 19, 25, and 29
Tax on the amount on line 1 from the 2010 Tax Rate Schedule
䊳
Tax. Enter the smaller of line 30 or line 31 here and on line 7 of the Worksheet on page 3

Page 4

6
7
8

29
30
31
32

Form

1041-ES
Department of the Treasury
Internal Revenue Service

2010

Payment
Voucher

OMB No. 1545-0971

Calendar year—Due Sept. 15, 2010
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

2010

Payment
Voucher

OMB No. 1545-0971

Calendar year—Due June 15, 2010
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

2010

Payment
Voucher

OMB No. 1545-0971

Calendar year—Due April 15, 2010
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	2010 Form 1041-ES
Subject	Fillable
Author	SE:W:CAR:MP
File Modified	2009-11-23
File Created	2009-11-22