Your guide to filing estate and trust taxes with confidence.
Here’s everything you need to file your estate & trust taxes right the first time.
Get StartedYour guide to filing estate and trust taxes with confidence.
Here’s everything you need to file your estate & trust taxes right the first time.
Get Started
What it means to file as a Estate or Trust
If you created or began managing an estate or trust in 2025, this may be your first year filing a fiduciary return.
Estates and trusts are considered separate tax entities, which means they may have to file a tax return if they earn income.
File Form 1041
Estates and trusts report income and expenses by filing a fiduciary tax return using Form 1041.
Understand How Income Is Taxed
Income retained by the estate or trust is taxed at the entity level.
Distribute Income with Schedule K-1
Income distributed to beneficiaries is reported on Schedule K-1 and included on their personal tax returns.
Maintain Accurate Records
Fiduciaries must keep clear records of all income, expenses, and distributions.
Key tax forms for Estates & Trusts
Filing Form 1041 for the first time can feel unfamiliar — especially if you’ve never acted as a fiduciary before. Here are the key rules and responsibilities that matter most.
Reports the estate or trust’s income, deductions, and distributions.
Beneficiaries report K-1 income here.
Shows income passed to each beneficiary.
Key things to understand
Fiduciary accounting is different from personal accounting.
Not all income is treated the same.
Distributions determine who pays the tax.
You must keep records of all receipts and disbursements.
Fiduciaries are responsible for accuracy.
Estates may choose a fiscal year; trusts cannot.
What you need
These items help determine what income is taxed at the entity level and what flows to beneficiaries.
Download Free P&L Template
Common deductions
Estates and trusts can deduct certain expenses that reduce taxable income retained by the entity.
Trustee, executor, or administrator fees
Legal and accounting fees
Investment advisory fees
Costs related to managing assets
Charitable contributions (if allowed by the trust document)
Administration expenses (postage, notices, appraisals, etc.)
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Start filing with confidence
Gather Financial Records
Collect all income, expense, and distribution records before you begin filing.
Enter Entity Details
Input your estate or trust information into TaxAct and follow the guided process.
Determine Income Distribution
Review which income is retained by the entity and which is passed to beneficiaries.
Generate Schedule K-1s
Create accurate K-1s for beneficiaries when distributions are made.
File with Confidence
Complete your return with clear, step-by-step guidance from start to finish.
