Alabama Department of Revenue - Fiduciary Tax FAQs

Frequently Asked Questions
Fiduciary (Form 41)

In the final year of an estate or trust can the loss be passed on to the beneficiary?

The excess loss on termination may not be passed along to the grantor or beneficiary of an estate or irrevocable trust.

Can the federal income tax paid on federal Form 1041 be claimed as a deduction on the Alabama return?

Yes, federal income tax paid by the estate or trust is allowed as a deduction on Alabama Form 41.

Can I claim the federal estate taxes paid as a deduction on the Alabama Form 41?

Yes, federal taxes paid by the estate on federal Form 706 may be claimed by the estate in the year they are paid.

Can charitable deductions made by the estate/trust be claimed as a deduction on the Alabama Form 41?

Yes, these are claimed on page 3, Schedule C, Line 13. Federal charitable deductions are listed in Column A. Alabama Charitable contributions are deductible to the same extent allowed for an individual and shown in Column C.

Are estimate payments required?

No, estimate payments are not required. In fact our system is not set up to process estimate payments made by an estate or trust. If you feel estimate payments are necessary, they should be submitted on Form 4868A (extension form) using the FEIN of the estate/trust.

Can composite payments made on behalf of the estate/trust by a partnership be claimed on the Alabama Form 41?

Yes, these payments should be show on line 7d. Also, list the name of the entity that paid the composite payment and the FEIN. You may include a copy of the K-1 Form 41 for clarification especially if there is more than one composite payment made on behalf of the estate/trust.