Fiduciary Tax Return
A fiduciary tax return is a tax return filed by a Fiduciary, such as an Executor, Trustee, or Administrator, on behalf of an Estate or Trust that earns any income.
This type of income can include interest, dividends, rental income, and other types of earnings the deceased was previously receiving.
The tax rate for estate income tax varies depending on the amount of income earned by the estate and the tax laws in the state where the estate is located.
To fulfill this tax obligation, the Executor will need to submit IRS Form 1041 to the IRS.
Estate income tax is different from individual income tax in that individual income tax is based on the income earned during a person's lifetime, while estate income tax is based on the income earned by an estate after a person's death.
Additionally, estate income tax is different from an Estate Tax, which is a tax on the total value of an estate.
Estate income tax is also known as Estate Income Tax.