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% (0.10) to
figure the amount of tax to enter on line
7, unless the trust is expected to have
qualified dividends or a net capital gain
for 2021. Use Part IV of Schedule D of
Form 1041-N, U.S. Income Tax Return
for Electing Alaska Native Settlement
Trusts, as a worksheet to figure the 2021
tax on qualified dividends or net capital
gain. See the Instructions for Form
1041-N at www.irs.gov/Form1041N for
more information.
Line 10. Credits
For details on credits the estate or trust
may claim, see the instructions for lines
2a–2d of Schedule G, Form 1041.
Line 12. Other Taxes
Enter any other taxes such as the
following.
• For estates and trusts, the Net
Investment Income Tax (NIIT) is 3.8% of
the lesser of the estate’s or trust’s
undistributed net investment income or
the excess of the estate’s or trust’s AGI
over the dollar amount at which the
highest income tax bracket for estates
and trusts begins for such tax year. For
tax years beginning after 2020, the
highest income tax bracket applies to
amounts over $13,050. The NIIT doesn’t
apply to trusts where all of the unexpired
interests are devoted to charitable
purposes. For information about the
NIIT, see the Instructions for Form 8960.
• 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 2020 Instructions
for Form 1041.
Note: For 2021, the highest income tax
rate for trusts is 37%.
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 didn’t include
household employment taxes when
figuring its estimated tax.
When To Make Estimated
Payments
Trusts. The trust may pay all of its
estimated tax by April 15, 2021, or in
four equal installments due by the
following dates.
1st installment ............... April 15, 2021
2nd installment ..............June 15, 2021
3rd installment ...............Sept. 15, 2021
4th installment ............... Jan. 18, 2022
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.
TIP
The trust doesn’t have to
make the payment due on
January 18, 2022, if it files
the 2021 Form 1041 by
January 31, 2022, 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 2021 tax
year or in four equal installments due on
the 15th day of the 4th, 6th, and 9th
months of the 2021 tax year, and the 1st
month of the following tax year.
TIP
The estate doesn’t 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 2021 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. See
Pub. 509, Tax Calendars, for a list of all
legal holidays.
If, after March 31, 2021, 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 2020 or 2021 is from
farming or fishing, do one of the
following.
• Pay the total estimated tax (line 16 of
the 2021 Estimated Tax Worksheet) by
January 18, 2022.
• File Form 1041 for 2021 by
March 1, 2022, and pay the total tax
due. In this case, don’t make estimated
tax payments for 2021.
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, do
the following.
• 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 2020 overpayment
that the estate or trust chose to credit
against its 2021 tax, but don’t include
the overpayment amount in this box.
• Enclose, but don’t 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
“2021 Form 1041-ES” on the check or
money order. Do not include any balance
due on the 2020 Form 1041 with the
check for 2021 estimated tax.
Fill in the Record of Estimated Tax
Payments in the 2021 Tax Rate Schedule
and keep them for your files.
No checks of $100 million or more
accepted. The IRS can’t accept a single
check (including a cashier’s check) for
amounts of $100,000,000 ($100 million)
or more. If you’re sending $100 million or
more by check, you’ll need to spread the
payments over two or more checks with
each check made out for an amount less
than $100 million. The $100 million or
more amount limit does not apply to
other methods of payment (such as
electronic payments), so please consider
paying by means other than checks.
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