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Trusts and Estates must complete Form IL-1041. Computer generated forms from an IDOR-approved software developer are acceptable. 2024 Form IL-1041 is for tax year ending on or after December 31, 2024, and ending before December 31, 2025.
Line 14 B - Foreign Taxes - Amounts reported in Box 14, Code B represent a taxpayers share of the Foreign Taxes paid by the estate or trust. Any amount entered here will not carry to any form or schedule on the Form 1040.
At a glance: Income generated between the owners death and asset transfer to beneficiaries must be reported to the Internal Revenue Service on Form 1041. Beneficiaries are responsible for paying income tax if assets are distributed before earning income.
A Schedule B IRS form reports taxable interest and dividend income received during the tax year. Most taxpayers only need to file a Schedule B if they receive more than $1,500 of taxable interest or dividends.
The fiduciary of a domestic decedents estate, trust, or bankruptcy estate files Form 1041 to report: The income, deductions, gains, losses, etc. of the estate or trust.
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Schedule B is used to determine the estates or trusts income distribution deduction. The amount for line 18 (Income distribution deduction) on page 1 of the 1041 return flows from line 15 of Schedule B. Entries to Schedule B can be made on screen 4.
A trust or decedents estate is allowed an income distribution deduction for distributions to beneficiaries. To figure this deduction, the fiduciary must complete Schedule B. The income distribution deduction determines the amount of any distributions taxed to the beneficiaries.
The fiduciary of a domestic decedents estate, trust, or bankruptcy estate files Form 1041 to report: The income, deductions, gains, losses, etc. of the estate or trust. The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries.

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