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Decedents Estate The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has: 1. Gross income for the tax year of $600 or more; 2. A beneficiary who is a nonresident alien; or 3.
Executors of estates only file the final Form 1040 for the year when the person died. This statement is true unless the taxpayer did not file prior returns. If the taxpayer failed to file, the personal representative may need to file more than that one final return.
In summary, Form 1040 declares income the person earned during the tax year while they were alive, and Form 1041 declares income earned by the estate or trust after the owners death.
The fiduciary of a resident estate or trust must file a return if the estate or trust is required to file a federal fiduciary income tax return (Form 1041), or if it had any Virginia taxable income.
I know we use those terms somewhat interchangeably, but when were talking about fiduciary income taxation were really talking about the income taxation of the assets that are in a persons estate or the income taxation of assets that are held in a trust.
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Estates and trusts report income on the PA-41 Fiduciary Income Tax return. Estates and trusts are entitled to deduct from their income any distribution of income that they are required to distribute (under the governing instrument or state law) or actually pay or credit to a beneficiary.
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.
If the estate generates more than $600 in annual gross income, you are required to file Form 1041, U.S. Income Tax Return for Estates and Trusts. An estate may also need to pay quarterly estimated taxes. See Form 1041 instructions for information on when to file quarterly estimated taxes.

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