OMB No. 1545-0971 1041-ES (OCR) Section references are to the Internal Revenue Code. Department of the Treasury Internal Revenue Service How To Figure Estimated Tax Who Must Make Estimated Tax Payments Use the 2000 Estimated Tax Worksheet and 2000 Tax Rate Schedule on page 3; and the estate’s or trust’s 1999 tax return and instructions as a guide for figuring the 2000 estimated tax. Generally, a fiduciary of an estate or trust must pay estimated tax if the estate or trust is expected to owe, after subtracting its withholding and credits, at least $1,000 in tax for 2000 and can expect its withholding and credits to be less than the smaller of: 1. 90% of the tax shown on the 2000 tax return; or 2. The tax shown on the 1999 tax return (108.6% of that amount if the estate’s or trust’s adjusted gross income (AGI) on that return is more than $150,000, and less than ²/3  of gross income for 1999 or 2000 is from farming or fishing). To figure the estate’s or trust’s AGI, see the instructions for line 15b of Form 1041, U.S. Income Tax Return for Estates and Trusts. Exceptions. Estimated tax payments are not required from: 1. An estate of a domestic decedent or a domestic trust that had a full 12-month 1999 tax year and had no tax liability for that year; Purpose of Form Use this package to figure and pay estimated tax for an estate or trust. Estimated tax is the amount of tax an estate or trust expects to owe for the year after subtracting the amount of any tax withheld and the amount of any credits. The IRS may send preprinted payment vouchers to estates or trusts that are no longer in existence or not required to file. In these cases, the fiduciary should discard the vouchers. Cat. No. 23325U Decedent’s estate. A decedent’s estate is allowed a $600 exemption. Trust. A trust that is required by its governing trust instrument to distribute all its income currently is allowed a $300 exemption, even if it distributes amounts other than income during the tax year. All other trusts are allowed a $100 exemption. Line 10—Credits Line 12—Other Taxes Line 4—Exemption Estimated Income Tax for Estates and Trusts However, if a return was not filed for 1999 or that return did not cover a full 12 months, item 2 does not apply. 2. A decedent’s estate for any tax year ending before the date that is 2 years after the decedent’s death; or 3. A trust that was treated as owned by the decedent if the trust will receive the residue of the decedent’s estate under the will (or if no will is admitted to probate, the trust primarily responsible for paying debts, taxes, and expenses of administration) for any tax year ending before the date that is 2 years after the decedent’s death. If the estate or trust receives its income unevenly throughout the year, it may be able to lower or eliminate the amount of its required estimated tax payment for one or more periods by using the annualized income installment method. See Pub. 505, Tax Withholding and Estimated Tax, for details. For details on credits you may claim, see the instructions for line 2, Schedule G, Form 1041. Enter any other taxes such as: Changes To Note For this purpose, include household employment taxes when figuring the tax shown on the tax return, but only if:  The estate or trust will have Federal income tax withheld from any income, OR  The estate or trust would be required to make estimated tax payments (to avoid a penalty) even if it did not include household employment taxes when figuring its estimated tax.  Tax from recapture of investment credit, low-income housing credit, qualified electric vehicle credit, or the Indian employment credit.  For tax years beginning in 2000, the estimated tax safe harbor that is based on the tax shown on the prior year tax return is increased to 108.6% of that amount if the adjusted gross income on that return is more than $150,000, and less than²/3  of gross income for 1999 or 2000 is from farming or fishing. Instructions for 2000 Estimated Tax Worksheet Estates. If the estate has adopted a calendar year as its tax year, file using the rules listed under Trusts above. When To Make Estimated Tax Payments Trusts. Pay all your estimated tax by April 17, 2000, or in four equal installments due by the following dates: 1st installment April 17, 2000 2nd installment June 15, 2000 3rd installment Sept. 15, 2000 4th installment Jan. 16, 2001 Note: The trust does not have to make the payment due on January 16, 2001, if it files the 2000 Form 1041 by January 31, 2001, AND pays the entire balance due with the return. Include household employment taxes on line 12 if:  Tax on accumulation distribution from trusts.  Tax figured under section 641(c) on income attributable to S corporation stock held by an electing small business trust. For details, see the line 8 instructions on page 18 of the 1999 Instructions for Form 1041.  The estate or trust will have Federal income tax withheld from any income, OR  The estate or trust would be required to make estimated tax payments (to avoid a penalty) even if it did not include household employment taxes when figuring its estimated tax. If the estate has adopted a fiscal year, it must pay all of its estimated tax by the 15th day of the 4th month of its 2000 tax year or in four equal installments due on the 15th day of the 4th, 6th, and 9th month of the 2000 tax year, and the 1st month of the following tax year. 2000  Beginning with payments made after January 31, 2000, fiduciaries will no longer be able to submit estimated tax information on magnetic tape. See Electronic Deposits on page 2 for new payment options.  All or part of the research credit may not be allowed when figuring certain estimated tax payments. The credit attributable to the first suspension period (defined below) cannot reduce any installment due before October 1, 2000, and the credit attributable to the second suspension period (defined below) cannot reduce any installment due before October 1, 2001. Instead, the research credit attributable to each suspension period is allowed in full against any installments due on or after those dates. For tax years beginning in 2000, the first suspension period begins January 1, 2000, and ends September 30, 2000, and the second suspension period begins October 1, 2000, and ends September 30, 2001. The credit attributable to a suspension period is figured by multiplying the total research credit for the tax year by the ratio of (a) the number of months in the suspension period that are included in the tax year to (b) the number of months in the tax year. Note: The estate does not have to make the payment due on the 15th day of the 1st month following the close of the fiscal tax year if it files the 2000 Form 1041 by the last day of the 1st month following the close of the fiscal year, AND pays the entire balance due with the return. If any date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day.