Alabama Form 41, Fiduciary Income Tax Return (2023), is the return the Alabama Department of Revenue (ADOR) uses for estates and trusts for tax year 2023. Fiduciaries of resident and nonresident trusts, decedent's estates and certain other entities use it to compute Alabama taxable income, the income distribution deduction and the net tax due or refund. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; ADOR publishes the form and its instructions on revenue.alabama.gov.
Last updated
What is 41?
Alabama Form 41, Fiduciary Income Tax Return (2023), is the Alabama Department of Revenue (ADOR) return on which the fiduciary of an estate or trust computes Alabama taxable income, the income distribution deduction and the net tax due or refund for tax year 2023.
The return is built in four pages:
- Page 1: entity information and the tax computation, lines 1 to 12.
- Schedule A (page 2): the Alabama income distribution deduction. Schedule B on the same page is the Alabama charitable deduction.
- Schedule C (page 3): Alabama adjusted total income, in three columns: as reported on federal Form 1041, Alabama adjustments and the Alabama amount.
- Schedule K (page 4): a summary of the information on the Alabama Schedule K-1s.
The type-of-entity boxes cover a decedent's estate, simple trust, complex trust, qualified disability trust, ESBT (S portion only), grantor type trust, Chapter 7 and Chapter 11 bankruptcy estates, pooled income fund and qualified funeral trust. The ADOR instructions also cover Schedules D, E and G, and the Alabama Schedule K-1.
Form 41 is not the federal Form 1041, U.S. Income Tax Return for Estates and Trusts. It is the Alabama return, and a complete copy of the federal Form 1041 must be attached to it for the return to be considered complete.
Who needs to file 41?
Fiduciaries of estates and trusts that meet the Alabama filing requirement in Section 40-18-29(a) file Form 41. The ADOR instructions name these groups:
- All resident trusts with net income over $1,500 for the year.
- All nonresident trusts with any Alabama-derived net income after deductions.
- Any trust, resident or nonresident, claiming a qualifying net operating loss. It must file in the year of loss to qualify for credit on future years' returns.
Grantor trusts, as described in 26 U.S.C. §671, also have an Alabama filing requirement under §§40-18-25(g) and 40-18-29. They complete the upper part of page 1, indicate on page 1 that the trust is a grantor trust, enter zeroes on the computation lines and complete Alabama Schedule G, Grantor's Statement of Income, Deductions, and Other Items. Schedule C is not required for a grantor trust.
Fiduciaries of a CRAT, CRUT or tax exempt organization (TEO) follow the standard instructions for lines 1 through 5, enter 0 on line 5a and check the box that identifies the entity type. The form is signed by the fiduciary or the officer representing the fiduciary. A paid preparer completes the preparer block.
When to file 41
A calendar year return is due on or before April 15 following the close of the calendar year; the 2023 form prints April 15, 2024. Fiscal year and short year returns are due on or before the 15th day of the fourth month following the close of the fiscal or short year. If the due date falls on a Saturday, Sunday or holiday, the return is due the next business day.
An extension of time to file that is allowed for federal income tax purposes is recognized by Alabama. It does not extend the time to pay, so the tax due must be paid by the original due date. For tax years beginning on or after January 1, 2016, the due date for a tax exempt organization is the same as the due date of its federal return.
Alabama law does not require estimated payments; voluntary payments can be sent with Form FDT-V. A return filed after the due date (with extension) carries a failure-to-file penalty, even if it shows a refund or zero balance; see the instructions for line 11c.
Documents you need
- A complete copy of federal Form 1041, U.S. Income Tax Return for Estates and Trusts, with all federal K-1s, statements and attachments; without it the return is not complete.
- A list of any voluminous depreciation or similar schedules you omit from the federal copy; the list must be provided if ADOR requests the schedules.
- A properly completed Alabama Schedule K-1 or Schedule G for each person or tax entity that was a beneficiary at any time during the taxable year.
- Form FDT-V, enclosed when a payment is mailed with the return.
- A copy of Form W-2 or Form 1099 when you claim Alabama income tax withheld on line 8b.
- Schedule FC for credits claimed on line 8a, and for lines 8h and 8i.
- Schedule CP-B when you claim composite payments or electing pass-through entity credits on line 8f.
- Schedule ESBT when the trust is an electing small business trust, and Schedule NOL-F85A if an ESBT NOL applies.
- A computation schedule when the CRAT/CRUT or NOL box is checked on line 5a.
- A complete explanation for each adjustment entered on Schedule A, line 6, and supporting documents for Schedule C, Column B adjustments.
- Alabama Schedule D, Schedule E, federal Schedule C (business) or federal Schedule F (farm) when the matching income is reported on Schedule C.
How to fill out 41
Enter the tax year and entity type
Mark CY, FY or SY, and for a fiscal year enter the beginning and ending dates. Check one type of entity: decedent's estate, simple trust, complex trust, qualified disability trust, ESBT (S portion only), grantor type trust, bankruptcy estate (Ch. 7 or Ch. 11), pooled income fund or qualified funeral trust.
Identify the estate or trust
Enter the Federal Employer Identification Number, the name of the estate or trust, the name and title of the fiduciary and the fiduciary's address. Do not use the EIN of the accounting firm, trustee, attorney's firm or an interest payor.
Mark the return status boxes
Check Initial Return, Amended Return or Final Return, and any box for address change, income from more than one state, fiduciary or name change, or cash basis. Enter the date entity created, the number of K-1s and Schedule Gs attached, resident or nonresident, and revocable or irrevocable for a trust. For a decedent's estate, give the deceased's Social Security Number.
Figure taxable income on lines 1 to 5
Line 1 is Schedule C, line 18c; line 2 is Schedule A, line 15; line 3 is the exemption under 40-18-19. Line 4 is lines 2 and 3 added, and line 5 is line 1 less line 4.
Compute tax on lines 5a to 7
Use the Tax Computation Worksheet in the instructions for line 5a, entering 0 for a CRAT, CRUT or tax exempt organization. For an ESBT, attach Schedule ESBT and enter the total on line 6, then compute line 6a. Line 7 is lines 5a plus 6a.
Enter credits and payments on lines 8a to 9
Enter allowable credits from Schedule FC (8a), withholding (8b), the 2022 overpayment (8c), estimated, extension and WNR-V payments (8d), payments with the original return (8e), and composite or electing pass-through entity amounts (8f). Enter line 8g as a negative number, add lines 8h and 8i, and total lines 8a through 8i on line 9.
Calculate net tax due or refund
Line 10 is line 7 minus line 9: positive means tax owed, negative means overpayment. On lines 11a to 11d enter any credit to 2024 estimated tax, interest, penalties and their total. Line 12 is lines 11d and 10 combined; if you owe, Form FDT-V must accompany payment.
Complete Schedule A on page 2
Start with page 1, line 1 on Schedule A, line 1, then work through lines 2 to 7 for Alabama distributable net income. Complete lines 8 to 14 as the instructions direct (line 8 is for complex trusts only), and enter the smallest of lines 13 or 14 on line 15 and on page 1, line 2.
Complete Schedule B if it applies
Skip Schedule B for a simple trust or a pooled income fund. Otherwise enter charitable amounts on lines 1 to 4; line 5 carries to Schedule C, line 13, Column C.
Fill in Schedule C on page 3
For each income and deduction line, enter the federal Form 1041 amount in Column A, Alabama adjustments in Column B (increases positive, decreases negative) and the Alabama amount in Column C. Lines 18a, 18b and 18c must agree with the instructions, and line 18c goes to page 1, line 1.
Summarize K-1 data in Schedule K
Complete Schedule K from the Alabama Schedule K-1s: Column A distributable income, Column B nonresident non-Alabama source income, Column C reportable Alabama income, plus lines 9 to 16. Line 9 cannot be below zero.
Review, sign and download the PDF
Check that the amounts agree across pages, then sign and date as fiduciary or officer representing the fiduciary and add a daytime phone number and Social Security Number; a paid preparer completes the preparer block. Download or print the completed PDF from FillingPDF and assemble the package described under How to submit.
How to submit 41
Form 41 is filed with ADOR by mail, and the instructions describe electronic payment options. Where you mail it depends on whether a payment is included.
- Returns with payments: Alabama Department of Revenue, Income Tax Administration Division, P.O. Box 327444, Montgomery, AL 36132-7444. Make the check or money order payable to Alabama Department of Revenue and enclose Form FDT-V.
- Returns without payments: Alabama Department of Revenue, Income Tax Administration Division, P.O. Box 327440, Montgomery, AL 36132-7440.
- Electronic payment: by direct debit through approved e-file software vendors, or through My Alabama Taxes (MAT) at www.myalabamataxes.alabama.gov, which requires a Sign On Id and Access Code and accepts credit cards. For MAT technical help call 1-800-322-4106, option 5, or 334-242-1170, option 5, from 8:00 a.m. to 5:00 p.m. Central Standard Time. If you paid by electronic funds, check the indicator box at line 12.
Attach a complete copy of federal Form 1041 with all federal K-1s, statements and attachments, plus the Alabama schedules listed under required documents. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Filing without a complete copy of federal Form 1041 with all K-1s and statements; the instructions treat this as improper preparation and the return as delinquent.
- Omitting the Alabama Schedule K-1 or Schedule G for a person or entity that was a beneficiary at any time during the year.
- Entering the Employer Identification Number of the accounting firm, trustee, attorney's firm or an interest payor instead of the estate or trust's own FEIN.
- Using parentheses for negative numbers; the instructions say to enter negative numbers with the negative sign.
- Assuming a federal extension also extends payment; the tax must be paid by the original due date.
- Mailing a return with payment to the no-payment P.O. Box 327440, or sending payment without Form FDT-V.
- Completing a grantor trust return as a regular return instead of entering zeroes on page 1 lines 1-7, page 2 lines 1-15 and page 3 lines 1-19 and attaching Schedule G.
- Leaving 0 off line 5a for a CRAT, CRUT or tax exempt organization, or not checking the box for the entity type.
- Completing Schedule B for a simple trust or a pooled income fund, which the form says not to do.
- Entering Schedule A, line 6 adjustments without the complete explanation the instructions require.
Frequently asked questions
What is Alabama Form 41?
Alabama Form 41 is the Fiduciary Income Tax Return that the Alabama Department of Revenue requires from estates and trusts that meet the filing rules. This 2023 edition computes Alabama taxable income, the income distribution deduction and the net tax due or refund.
Who must file a fiduciary income tax return in Alabama?
Resident trusts with net income over $1,500, nonresident trusts with any Alabama-derived net income after deductions, and any trust claiming a qualifying net operating loss must file. Grantor trusts also have a filing requirement and complete Schedule G.
When is Alabama Form 41 due for 2023?
April 15, 2024 for a calendar year return. Fiscal and short year returns are due on the 15th day of the fourth month after the close of the year. If that date falls on a weekend or holiday, the return is due the next business day.
Does a federal extension extend the time to file Form 41?
Yes for filing: Alabama recognizes any extension allowed for federal income tax purposes. It does not extend the time to pay, so the tax due must be paid by the original due date of the return.
What do I attach to Alabama Form 41?
Attach a complete copy of federal Form 1041 with all federal K-1s, statements and attachments, and an Alabama Schedule K-1 or Schedule G for each beneficiary. Add Form FDT-V with a payment, and other schedules such as FC or CP-B when you use them.
Where do I mail Alabama Form 41?
Returns with payments go to P.O. Box 327444, Montgomery, AL 36132-7444; returns without payments go to P.O. Box 327440, Montgomery, AL 36132-7440. Both are addressed to the Alabama Department of Revenue, Income Tax Administration Division.
How do I file Form 41 for a grantor trust?
Complete the upper part of page 1 and indicate the trust is a grantor trust. Enter zeroes on page 1 lines 1-7, page 2 lines 1-15 and page 3 lines 1-19, and complete Alabama Schedule G. Schedule C is not required.
Is there a penalty for filing Form 41 late?
Yes. The instructions for line 11c set a failure-to-file penalty, due even if the return shows a refund or zero balance, and a monthly failure-to-pay penalty on tax not paid by the due date. See the instructions for the rates.
Can I fill out Alabama Form 41 online on FillingPDF?
Yes. You can fill out the fillable PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the return with ADOR; you submit it through the mailing and payment channels the instructions describe.
Ready to fill out 41?
Fill out 41 now