What tax form is required for estates and trusts to file?

Estates and trusts are required to file Form 1041, which is the U.S. Income Tax Return for Estates and Trusts. This form serves to report the income, deductions, gains, and losses of the estate or trust, as well as to calculate the taxable income.

When an estate or trust generates income, it must report that income to the IRS using Form 1041. The form is also used to distribute the income to beneficiaries, detailing how much each beneficiary receives and how the income is taxed at the trust or estate level versus the beneficiary level.

This form is distinct from others that cater to different entities. For instance, Form 990 is intended for tax-exempt organizations, Form 1065 is for partnerships, and Form 1120 is for corporate tax returns. Understanding the specific requirements of Form 1041 is crucial for ensuring compliance with IRS regulations pertaining to estates and trusts.