General Information for Trusts and Estates

Filing Requirement:

The annual return filing requirement for the Alabama Fiduciary Income Tax Return – Form 41 is established by §40-18-29(a), Code of Ala. 1975. The following fiduciaries must file returns:

• All resident trusts with net income over $1,500 for the year
• All non-resident trusts with any Alabama derived net income after deductions
• Any trust, resident or non-resident, claiming a qualifying net operating loss for the years must file in the year of loss to qualify for credit on the future years’ returns.

Grantor Trusts:

Grantor trusts, as described in 26 U.S.C. §671, have an Alabama return filing requirement specified by §§40-18-25 (g) and 40-18-29, code of Ala. 1975.

Alabama Estate and Inheritance Tax:

The Alabama Estate and Inheritance Tax is established by Title 40 Chapter 15. Federal legislation passed in 2001 authorizes the elimination of the federal estate and gift tax.

Alabama’s filing requirement is based on the federal estate tax credit allowed under the federal estate tax law. As a result of the federal tax changes enacted in 2001, estates where the decedent’s date of death is after December 31, 2004, are not required to file with Alabama.

Find the official press release regarding this elimination in the Newsroom.

Read the Legal Opinion on the Alabama Estate Tax.

Electronic Filing Mandate:                                                                       

Estates/Trusts with 20 or more beneficiaries at the end of the Estate/Trust’s taxable year are mandated to e-file Alabama fiduciary income tax returns, for that calendar year and all subsequent tax years.

If an income tax return preparer prepares 25 or more acceptable, original fiduciary income tax returns using tax preparation software in a calendar year, then for that calendar year and for each subsequent calendar year thereafter, all acceptable fiduciary income tax returns prepared by that income tax preparer must be filed using electronic technology, as defined in the “Electronic Tax Return Filing Act,” as codified in Chapter 30 of Title 40, Code of Ala. 1975.

Due Date/Extension:

Original Due Date. The fiduciary return is due on the same date as the corresponding federal income returns are required to be filed as provided under federal law. If the due date falls on a Saturday, Sunday, or state holiday, the return will be due the following business day.

Automatic Extension. Trusts and Estates will be granted an automatic extension to file its Alabama income tax return consistent with the extension allowed for the taxpayer’s corresponding federal income tax return. The corresponding federal extension form must be submitted with the Alabama return. An extension of time granted to file is not an extension of time for payment of the tax. The amount of tax due must be paid on or before the due date of the return without regard to any extension to file the return.

Forms:

To view a complete listing of forms for fiduciary income tax, please visit the forms page. You may search by form number, title of the form, division, tax category, and/or year.

Forms Search 

Most Popular Forms:

Form 41: Fiduciary Income Tax Return

Form FC: Fiduciary Credits

Form NOL-F85A: Application of Net Operating Loss Carryback or Carryforward – Fiduciary Return (Form 41)

Form NOL-F85: Computation of Net Operating Loss – Fiduciary Return (Form 41)

Form EST-1: Application for Estate Tax Waiver

FDT-V: Fiduciary Income Tax Payment Voucher

Payment Information:

My Alabama Taxes provides paying agents the ability to register for an account, pay fiduciary taxes, and view account balances and ALDOR generated letters.

• Bulk Pay Instructions
• 41 Bulk Pay Layout
• Check AL 41 File for Errors

FAQs:

https://www.revenue.alabama.gov/faq-categories/fidciary-form-41-and-fidciaries/