The 741 Kentucky Fiduciary Income Tax Return is a form used to report income, deductions, and tax obligations for estates and trusts in Kentucky. This form is essential for fiduciaries managing estates or trusts, as it ensures compliance with state tax regulations. Properly completing the 741 form helps in accurately calculating tax liabilities and claiming any eligible deductions or credits.
The 741 Kentucky Fiduciary Income Tax Return is an essential form for estates and trusts operating within Kentucky. It covers various entities, including decedent's estates, simple trusts, complex trusts, grantor trusts, and bankruptcy estates. This form is used to report the income, deductions, and tax liabilities of these fiduciaries for a specific taxable year. When filling out Form 741, fiduciaries must provide detailed information, such as the name of the estate or trust, the federal employer identification number, and the address of the fiduciary. Additionally, the form requires the completion of several schedules, including Schedules K-1, A, B, and M, which help in calculating adjusted total income and determining any deductions or credits applicable. It’s crucial to attach a copy of the federal return, along with any necessary schedules and statements, to ensure accuracy and compliance with Kentucky tax regulations. Understanding how to navigate this form can significantly impact the tax responsibilities of the fiduciary, making it vital to approach it with care and attention to detail.
741
Commonwealth of Kentucky
Department of Revenue
KENTUCKY
FIDUCIARY INCOME TAX RETURN
2021
For calendar year or other taxable year beginning ____________ , 2021, and ending _____________ , 20___.
Check applicable box:
Decedent's estate
Simple trust
Complex trust
ESBT (S portion only)
Grantor trust
Bankruptcy estate
Pooled income fund
Check applicable boxes:
Initial return
Amended return
Final return
Name of Estate or Trust
Federal Employer Identification Number
Name and Title of Fiduciary
Date Entity Created
Address of Fiduciary (Number and Street or P.O. Box)
Room or Suite Number
City, State and ZIP Code
Number of Schedules K-1 enclosed.
(Copies Must Be Enclosed)
Enclose a copy of the federal return including all schedules and statements.
1
Federal adjusted total income (federal Form 1041, line 17)
2
Additions (from page 3, Schedule M, line 4)
3
Enter the portion of deductions allocable to line 2
4
Subtract line 3 from line 2
5
Add lines 1 and 4
6
Subtractions (from page 3, Schedule M, line 8)
7
Enter the portion of deductions allocable to line 6
8
Subtract line 7 from line 6
9
Subtract line 8 from line 5. This is your Kentucky adjusted total income (loss). Enter here
and on page 3, Schedule B, line 1
10
Income distribution deduction (from page 3, Schedule B, line 15)
(enclose Schedule(s) K-1)
11
Pension income exclusion (enclose Schedule P, if more than $31,110)
12
Federal estate tax deduction (enclose computation)
13
Add lines 10, 11 and 12
14
Total income of fiduciary (subtract line 13 from line 9)
INTANGIBLE INCOME ATTRIBUTABLE TO NONRESIDENTS INCLUDED IN LINE 14
15Trusts or estates with income attributable to nonresident beneficiaries. Enter the portion of intangible income included in line 14 that is attributable to nonresident beneficiaries.
Enter zero if not applicable. See instructions
15
16 Taxable income of fiduciary (subtract line 15 from line 14) This is your taxable income
16
Official Use Only
210029 42A741 (10-21)
Page 1 of 3
FORM 741 (2021)
Page 2 of 3
TAX COMPUTATION
17
(a)
Tax: multiply line 16 by 5% (.05)
and add tax from:
(b)
Form 4972-K ; Sch. RC-R ; Sch. DS-R ; Angel Investor Recapture
Total
17c
18
Nonrefundable credit(s) (specify and enclose supporting documents)
19 Enter Tax Credit ($2 for a trust; $10 for an estate). This credit is not refundable
19
20
Total Tax (subtract lines 18 and 19 from line 17(c); if line 18 plus line 19 is more than line 17(c), enter -0-)
21
Estimated tax/Extension payments
21a
Withholding (W-2 or 1099 — enclose forms)
21b
(c)
Nonresident Withholding from Form PTE-WH, line 9 (enclose forms)
21c
(d)
Total of amounts on line 21(a) through 21(c)
21d
22
If line 20 is larger than line 21(d), subtract line 21(d) from line 20, and enter the TAX DUE
23
Estimated tax penalty Check if Form 2210-K attached
23a
Interest
23b
Late payment penalty
23c
Late filing penalty
23d
24
Add lines 23(a) through 23(d)
25
If the total of lines 20 and 24 is more than line 21(d), subtract line 21(d) from the total of lines 20 and
24. This is the AMOUNT YOU OWE
26
If line 21(d) is more than the total of lines 20 and 24, subtract lines 20 and 24 from line 21(d). This is
the AMOUNT YOU OVERPAID
27
Amount of line 26 to be CREDITED TO YOUR 2022 ESTIMATED TAX
28
Subtract line 27 from line 26. This is the amount to be REFUNDED TO YOU
I declare under the penalties of perjury that this return (including any accompanying schedules and statements) has been examined by me and, to the best of my knowledge and belief, is a true, correct and complete return.
Signature of Fiduciary or Agent
Date
Sign
Here
PTIN or Identification Number of Fiduciary or Agent
Telephone Number (daytime)
Signature of Preparer
Paid
Name of Preparer or Firm
ID Number
Preparer
Use
Email
Telephone No.
May the DOR discuss this return with this preparer?
¨ Yes ¨ No
Mail To:
Kentucky Department of Revenue
Frankfort, KY 40620-0016
Check Payable: Kentucky State Treasurer
Payment
E-Pay Options: revenue.ky.gov
Include: Your FEIN and “KY Income Tax—2021”
210030 42A741 (10-21)
Page 3 of 3
SCHEDULE A—CHARITABLE DEDUCTION (Do not complete for a simple trust or pooled income fund.)
Complete Schedule A only if you made additions to or subtractions from total income on page 1, lines 2 or 6 and claimed a charitable deduction on federal Form 1041.
1Kentucky taxable income that was paid or set aside for charitable purposes and was not reported on federal Form 1041, Schedule A, including additional capital gains. Enter here and include on Schedule M, line 7 ...............................................................................................................................................................
2Kentucky tax-exempt income that was paid or set aside for charitable purposes that was reported on federal Form 1041, Schedule A. Enter here and include on Schedule M, line 3.............................................
SCHEDULE B—INCOME DISTRIBUTION DEDUCTION (See federal instructions.)
Adjusted total income (enter amount from page 1, line 9)
Adjusted tax-exempt interest
Net gain shown on Schedule D, Form 741, column 1, line 19 (if net loss, enter zero)
Enter amount included from federal Schedule A, line 4
Enter net capital gains included on Kentucky Schedule A, line 1 or line 2
6Enter any Kentucky gains included on page 1, line 9 as a negative figure. If capital loss, enter as a
positive figure. (Kentucky gain/loss includes federal figures plus Kentucky adjustments.)
7 Distributable net income (combine lines 1 through 6)
8If complex trust, enter accounting income for tax years as determined under the governing
instrument and applicable law
Amount of income required to be distributed currently
Other amounts paid, credited or otherwise required to be distributed
Total distributions (add lines 9 and 10) (If greater than line 8, see federal instructions.)
Enter the amount of tax-exempt income included on line 11
Tentative income distribution deduction (subtract line 12 from line 11)
Tentative income distribution deduction (subtract line 2 from line 7)
Income distribution deduction (enter the smaller of line 13 or line 14 here and on page 1, line 10)
SCHEDULE M (FORM 741)
Part I—Additions to Federal Adjusted Total Income
1 Enter interest from bonds issued by other states and their political subdivisions .......................................
2 Enter additions from partnerships, fiduciaries and S corporations (enclose schedule) ...............................
3 Other additions (enclose schedule) ...................................................................................................................
4 Total additions. Enter here and on page 1, line 2 .............................................................................................
Part II—Subtractions from Federal Adjusted Total Income
5 Enter interest from U.S. government obligations (enclose schedule)............................................................
6 Enter subtractions from partnerships, fiduciaries and S corporations (enclose schedule) ..........................
7 Other subtractions (enclose schedule) ..............................................................................................................
8 Total subtractions. Enter here and on page 1, line 6........................................................................................
ADDITIONAL INFORMATION REQUIRED
1Was a Kentucky fiduciary income tax return filed for 2020? Yes No. If "No," state reason.
2If the fiduciary has income not taxed by Kentucky, have you deducted only that portion of expenses allocable to taxable income? Yes No. If "Yes," enclose computation.
3Did the estate or trust have any passive activity loss(es)? Yes No. (If "Yes," enter the loss(es) on Form 8582-K, Kentucky Passive Activity Loss Limitations, to determine the allowable loss.)
210003 42A741 (10-21)
4If a federal audit changed the taxable income as originally reported for any prior year, a copy of the Revenue Agent’s Report must be submitted to the Department of Revenue. Do not attach to this return.
5During the taxable year did you make an accumulation distribution as defined in Sec. 665(b), Internal Revenue Code? Yes No. If "Yes," enclose federal Schedule J (Form 1041).
6If this is an amended return, check the appropriate box on page 1. Explain changes below. Enclose a separate page if necessary.
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