Ohio Fiduciary Income Tax Return Instructions

Fiduciary Income Tax Return Instructions
Form IT 1041 Instructions
For taxable year
beginning in 2023

	

Instructions for Filing:
IT 1041 Fiduciary Income Tax Return

IT 1041
Rev. 12/23

Table of Contents
A

H

Adjustments to Federal Income	������������������������������������������� 13-15
Allocating Income................................................................. 16-17
Amended Returns..................................................................... 10
Apportionment Factor........................................................... 18-20

Highlights for 2023................................................................... 2-3

I

Interest & Penalties.............................................................. 12-13

B

Beneficiary Schedule................................................................. 21

M

D

Matching Allocation Based on Distributions	.............................. 23
Matching Expenses & Loss Amounts	��������������������������������������� 22

E

Payment Options...................................................................... 6-7

F

Refundable Business Credits	���������������������������������������������� 20-21
Refunds..................................................................................... 12
Resident Credit Calculation (IT RCTE)	�������������������������������� 17-18

Due Dates.............................................................................. 9-10
Entity Designation................................................................ 11-12
Estate Credits................................................................. 15-16, 24
Filing Tips................................................................................. 4-5

G

General Information................................................................ 8-10

P

R

T

Tax Brackets.............................................................................. 12
Taxable Income.................................................................... 12-13
Taxpayer Assistance	������������������������������������������������������������������� 1

Online Resources
The Department of Taxation's website at tax.ohio.gov has many resources available to assist when filing
the Ohio Pass-Through Entity & Fiduciary income tax returns:
PILOT – A virtual assistant, available 24/7 to answer questions for all tax types.
FAQs – Review answers to common questions on topics.
Forms – Find all pass-through entity & fiduciary income tax forms (including related schedules and
worksheets). Many forms have fill-in versions that can be completed online, print, and then submit
to the Department.
Information Releases – Research detailed explanations and legal analyses of certain tax topics.
Ohio Virtual Tax Academy – View webinars designed and presented by Department staff on Ohio's
state taxes.
Tax Alerts – Sign up to receive tax updates and reminders from the Department via email.

Federal Privacy Act Notice

Because we require you to provide us with a Social Security number, the
Federal Privacy Act of 1974 requires us to inform you that providing us
your Social Security number is mandatory. Ohio Revised Code 5703.05,
5703.057 and 5747.08 authorize us to request this information. We need
your Social Security number in order to administer this tax.

IT 1041
Rev. 12/23

Taxpayer Assistance

Need Help? – To help answer questions and ensure that the tax returns are filed accurately, the Department of Taxation
provides the following resources at tax.ohio.gov:

Additionally, the website has all Pass-Through Entity & Fiduciary income tax forms to download or print. If the answer is
unavailable on the website, contact the Department using any of the following methods:
Email – Click 'Contact Us' at the top right on tax.ohio.gov and select
'Email Us' to access a secure email form, or email directly to [email protected]. 	
Call – To speak with an examiner at 1-888-405-4039 during the
Department's normal business hours.

For persons who use text telephones (TTYs) or
adaptive telephone equipment only: Contact
the Ohio Relay Service at 7-1-1 or 1-800750-0750 and give the communication
assistant the Ohio Department of Taxation
phone number that you wish to contact.

Normal business hours are from 8 a.m. to 5 p.m. Monday through
Friday excluding holidays.
Write – Contact the Department by mail at:
Ohio Department of Taxation
Pass-Through Entity & Fiduciary Income Tax Division
P.O. Box 2619
Columbus, OH 43216-2619
Note: Please use the street address listed below to overnight
documents to the Department.
	
	

4485 Northland Ridge Blvd.
Columbus, OH 43229-6596

Form Requests: Visit tax.ohio.gov to easily download our forms.
Request tax forms anytime by calling 1-800-282-1782.

These instructions contain law references for specific line items and requirements. To review Ohio Pass-Through Entity &
Fiduciary income tax law, see R.C. 5747 and R.C. 5733, respectively.

Go Paperless and File Electronically!
The IT 1041 can be filed electronically through the federal e-file program overseen by the IRS (irs.gov/filing), or through
a participating third-party tax preparation product. PTEs can verify their software is compatible with the MeF program by
reviewing the list of approved software vendors at PTE and Fiduciary Income Tax - Software Developers.

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IT 1041
Rev. 12/23

Highlights for 2023

Tax Bracket Update
The tax year 2023 income tax table for estates and
trusts has been updated to include four brackets
(reduced from five). The highest rate was reduced
to 3.75%. For details of all changes, see the updated
tax brackets on page 12.

the annual amount of the credit and the period for
which the credit is awarded. If available, include a
copy of the report from the designated reporter that
indicates the amount of the annual credit amount
allocated to you. The credit cannot be claimed unless
you are included on this report.

See R.C. 5747.02(A)(2).

For additional details, see Schedule E.

	New New Addition for SALT Cap Taxes Paid to
Other States
A new addition is required on the IT 1041 for taxes
deducted in computing federal or Ohio taxable
income and paid to another state or District of
Columbia as part of that state’s SALT cap tax related
to IRS Notice 2020-75. For more information, see
page 13.

See R.C. 175.16 and 5747.83.

See R.C. 5747.01(S)(16).
	New Ohio Adoption Credit Repealed
The Ohio Adoption Credit was repealed and is no
longer available. For details, see page 16.
See former R.C. 5747.37, repealed in 2023 Am. Sub.
H.B. No. 45.
	New Bonus Depreciation Repealed
The IRC §168(k) bonus depreciation and §179 expense
add-back has been repealed. For more details
including how to report deductions from prior-year
add-backs, see page 21.
See R.C. 5747.01(S)(14), effective 10/3/2023.
	New Credit for Sale/Rental of Agricultural Assets
to Beginning Farmers
This credit is granted by the Ohio Department of
Agriculture (ODA). To claim the credit, you must attach
a copy of the certificate from ODA that indicates the
amount of the credit and the tax year for which the
credit is awarded.
For additional details, see Schedule E.
See R.C. 901.61(D) and 5747.77(A).
	New Welcome Home Ohio Credit
This credit is granted by the Ohio Department of
Development (ODOD). To claim the credit, you must
attach a copy of the certificate from ODOD that
indicates the amount of the credit and the tax year
for which the credit is awarded.
For additional details, see Schedule E.
See R.C. 122.633.
	New Ohio Low-Income Housing Credit
This credit is granted by the Ohio Housing Finance
Agency (OHFA). To claim the credit, you must attach a
copy of the credit certificate from OHFA that indicates

	 New Affordable Single-Family Housing Credit
This credit is granted by the Ohio Housing Finance
Agency (OHFA). To claim the credit, you must attach a
copy of the credit certificate from OHFA that indicates
the annual amount of the credit and the period for
which the credit is awarded. If available, include a
copy of the report from the designated reporter that
indicates the amount of the annual credit amount
allocated to you. The credit cannot be claimed unless
you are included on this report.
For additional details, see Schedule E.
See R.C. 175.17 and 5747.84.
IT K-1
Each entity with Ohio income should prepare a separate
IT K-1 for each investor, owner or qualifying beneficiary
to enclose with the investor’s, owner’s or beneficiary’s
return. If the tax preparation software allows for PDF
attachments, include a copy of the form. The IT K-1 form
has been updated to include lines for reporting required
direct and indirect add-backs for electing pass-through
entity tax paid.
For more information, see the IT K-1 form and
instructions on tax.ohio.gov in the searchable Tax
Forms section.
Credit Carryforward
Beginning with tax years that start on or after
Januar y 1, 2020 the credit carr yfor ward of
overpayments has been reinstated, however for
tax years 2017-2019 the Department did not permit
credit carryforwards. A credit carryforward is only
allowed on a timely filed, original return; otherwise,
any overpayment will be refunded.
Opportunity Zone Investment Credit Transfer Form
A person that holds a wholly or partially unclaimed Ohio
Opportunity Zone Investment credit certificate may
transfer the right to claim all or part of the remaining
credit to any other person. The Opportunity Zone
Investment Credit Transfer Form is available at tax.
ohio.gov. For more information about the credit, visit
development.ohio.gov or call ODOD at 1-800-848-1300.
See R.C. 122.84(E).
Schedule E Update (Nonrefundable Business
Credits)
Schedule E has been updated to include the
following new credits: Credit for Commercial Vehicle

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IT 1041
Rev. 12/23

Operator Training Expenses, Credit for Sale/Rental of
Agricultural Assets to Beginning Farmers, Welcome
Home Ohio Credit, Ohio Low-income Housing Credit
and Affordable Single-Family Housing Credit. Existing
“Vocational Job Credit” name has been updated to
“Credit for Work-Based Learning Experiences.”
The form is available in the searchable Tax Forms
section at tax.ohio.gov.”
IT RCTE (Trust/Estate Resident Credit)
Trusts and estates use the IT RCTE to calculate their
resident credit. Include the IT RCTE form with the
completed IT 1041 and retain a copy for the entity’s
records. If the tax preparation software allows for
PDF attachments, include a copy of the form.
The form is available in the searchable Tax Forms
section at tax.ohio.gov.
IT NRCE: Ohio Nonresident Credit for Estates
Estates use the IT NRCE to calculate the nonresident
portion of their federal taxable income. The
nonresident portion is used to calculate the Ohio
nonresident credit. Include the IT NRCE form with the

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completed IT 1041 and retain a copy for the estate’s
records. If the tax preparation software allows for PDF
attachments, include a copy of the form. The form is
available in the searchable Tax Forms section at tax.
ohio.gov.
Electronic Filing
The IT 1041 can be filed electronically through
the federal efile program overseen by the IRS
(irs.gov/filing), or through a participating thirdparty tax preparation product. For a current list of
approved software programs, please see the Software
Developers page on the Ohio Department of Taxation
website, and search for the most recent MeF Approval
Status link.
A tax return preparer that prepares more than 11
original tax returns during any calendar year shall
use electronic filing technology. This provision does
not apply to a tax return preparer in any calendar
year if, during the previous calendar year, the tax
return preparer prepared not more than 10 original
tax returns.
See R.C. 5747.082

IT 1041
Rev. 12/23

Filing Tips

Provide a Current Address
The Department uses the most up-to-date address on file to send correspondence, billings, assessments and
refunds. If the address is not correct, refunds and notices will be mailed to the incorrect address. To update an
address, check the box above the address line on the return or visit the Business Address Update page at tax.
ohio.gov to change the address.
Verify the IT 1041 and UPCs are for the Correct Tax Year
Verify the UPC reflects the correct name, address and federal employer identification number (FEIN) for the
correct application of the payment.
Maintain a Bank Account
The trust or estate must maintain its bank account to ensure it can receive refunds after its closing date.
The Department cannot change the name on a refund check, nor issue the check directly to a trustee or
beneficiary, due to the closing or termination of a trust or estate.
Report FEIN or SSN in Correct Field
Do not enter an SSN in the FEIN field nor enter a FEIN in the SSN field.
Determine Residency of the Trust
A trust’s residency is determined under Ohio law using a series of tests; it is not determined based on the
location of either the trustee or the administration of the trust’s assets. Please note, it is possible that more
than one residency test can apply to all or a portion of a trust.
See R.C. 5747.01(I)(3) and Information Release IT 2003-02 - Trust Residency.
Reprint Corrected Software-Generated Paper Returns
If the printed software-generated return from a tax preparation program subsequently requires changes on
the return, do not write in the changes. Use the software to make the necessary changes, save, and reprint the
return. The Department’s system will not pick up handwritten changes on returns generated by tax preparation
software.
Complete All Applicable Schedules on the Return
When filing via a software program, complete all relevant schedules and do not override any line items.
Information from schedules on the return flows to other lines that are used to calculate the tax liability. If
the schedules are not completed, a value of zero will flow to the corresponding lines, which will override any
amounts that may have been entered. The return will be recalculated accordingly, resulting in a potential
billing notice or reduced refund.
Report Trust income as Follows:
●	Qualifying trust amounts on schedule VI (see page 13 for instructions);
●	Apportioned modified business income and qualifying investment income on schedule VII (see page 13
for instructions);
●	Allocated modified nonbusiness income on schedule VIII (see page 13 for instructions).
Trust income categorized incorrectly may result in a potential billing notice or refund reduction.
Report Apportionment Ratio and Ownership Percentage
Enter percentages and ratios in decimal format (e.g., report 30.09% as .3009; Report 100% as 1.0000.) Enter
apportionment ratios in decimal format and carry to six decimal places. In addition, do not enter text (e.g.,
“null” or “zero”) in numeric fields.

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Rev. 12/23

Report Estimated Payments, Withholding, and Credits on Correct Lines
Incorrect reporting of the payments, withholdings, and credits may result in a denied/reduced refund or bill.
●	Report estimated payments, withholding and/or overpayments previously claimed on Schedule XI - Net
Payment Worksheet as follows:Line 79a: Enter estimated payments made with an IT 1041 UPC or EFT
payments made through the Ohio Treasurer of State for this tax year;
●	 Line 79b: Enter 1099 withholding;
●	 Line 79c: Enter W-2 withholding;
●	 Line 79e: [Amended Return ONLY] Enter the refund amount from line 17 from the original return filed
for this tax year.
●	Report refundable business credits on Line 15 of Schedule I and on Schedule XII – Refundable Business
Credits as follows:
●	 Line 81: Enter the Motion Picture/Broadway credit;
●	 Line 82: Enter the refundable portion of the Job Retention credit and the Job Creation credit;
●	 Line 83: Enter the Pass-Through Entity credit;
●	 Line 84: Enter the Venture Capital credit;
●	 Line 85: Enter the refundable portion of the Ohio Historic Preservation credit.
●	Report nonrefundable business credits on Line 10 of Schedule I and on Schedule E. Include a copy of
Schedule E, Schedule of Nonrefundable Business Credits, and include copies of the required certificates
and/or IT K-1s for verification.
●	 Do not use Schedule E to claim refundable credits. Instead, claim refundable credits on the appropriate
“refundable credits” line.
Calculate the Resident Tax Credit on the Trust’s Modified Nonbusiness income
Include only the modified nonbusiness income in the calculation of the resident trust tax credit on Schedule
IX. Failure to do so may result in a denied/reduced refund or bill.
Report Proportionate Share of Credits
A distribution made by a trust/estate may affect the amount of a credit it is allowed to claim on its IT 1041.
Credits must be shared between the trust or estate and the beneficiaries in proportion to the income retained
versus distributed. See R.C. 5747.02(C)(3).

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Payment Options
First-Time Filers: Submit PTE Registration Form Before First Estimated Payment
If the trust or estate is a first-time filer, submit the Pass-Through Entity and Fiduciary Income Tax Registration Form before submitting the first estimated payment. The form can be found on the tax.ohio.gov website
in the Tax Forms search. Failure to submit the registration form may result in a delay in processing the
estimated payment(s), resulting in a billing notice or refund delay.
Submit a Separate Check for Each Balance
A separate check is required for each tax return payment, estimated payment, billing/assessment payment,
etc. The Department cannot apply a single check to multiple balances. The check or money order should be
made payable to “Ohio Treasurer of State” with identifying information on the memo line, including:
●	Federal employer identification number (FEIN), or SSN for decedent’s estate only
●	Tax form using the payment (IT 1041)
●	Tax year end for the payment (mm-dd-yy)
Using Payment Coupons Created by Third-Party Software
Before submitting a payment coupon created by third party software, please verify the reporting period end
date matches the software-generated Key ID numbers and the number string at the bottom of the payment
coupon, in the format MMYY. If mismatched, the payment will be misdirected, causing a delay in processing the estimated payment(s), resulting in a billing notice or refund delay. Please contact the thirdparty software company’s support line to resolve.
Methods for Making PTE and Fiduciary Income Tax Payments
1.	 Electronic Funds Transfer (EFT): Payments may be remitted by EFT (ACH credit) via the Ohio Treasurer of State (TOS). Any questions about the EFT payment process should be directed to the Ohio Treasurer of State by calling (877)338-6446.
	
	
	

This is an ACH credit option; the entity initiates the payment through its own bank. No online 		
credit card payment or ACH debit option exists at this time either through the Ohio Treasurer of 	
State (TOS) or the Ohio Department of Taxation.

	
	
	
	
	
	
	

Access the applicable tax form-specific link below for the information page with the TOS routing/		
account numbers and codes/format the financial institution must use to issue the ACH credit via the 		
TOS payment option:
IT 4708 Pass-Through Entity Composite Income Tax Payments
IT 1140 Pass-Through Entity and Trust Withholding Tax Payments
IT 1041 Fiduciary Income Tax (Trusts and Estates) Payments
IT 4738 Electing Pass-Through Entity Income Tax Payments

	
	
	

NOTE: The TOS no longer requires PTE and fiduciary filers to submit an EFT authorization form to 		
register before making an IT 4708, IT 4738,	 IT 1140 and/or IT 1041 payment via ACH credit (no ACH 		
debit option).
2.	 Check or Money Order: Make check or money order payable to “Ohio Treasurer of State.” A payment
made by a check or money order must be submitted with the appropriate Ohio Universal Payment Coupon (UPC) based on the form filed. All UPCs can be found on the tax.ohio.gov website in the searchable
Tax Forms section by entering “UPC” in the Form Title or Number field. Please mail the payment and
UPC to the address on the UPC or hand deliver to our self-service walk-in center.

Electronic Check: When filing electronically through an approved software program, the PTE or fiduciary
has the option to make a payment by electronic check in the form of an Electronic Funds Withdrawal, or
direct debit. The direct debit option is only available for e-filed returns. For mailed returns created from an
approved software program, the options for payment are 1) Electronic Funds Transfer (EFT), or check or
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IT 1041
Rev. 12/23

money order, as listed above.
For a current list of approved software programs, please see the Software Developers page on the Ohio Department of Taxation website, and search for the most recent MeF Approval Status link.
Please contact the software companies directly for their electronic payments support.
Completing the Universal Payment Coupon (UPC)
Each payment made by check or money order must be submitted with the appropriate Ohio Universal Payment Coupon (UPC). Application of payments is driven by the UPC used and is based on which form is filed
(i.e., IT 1041, IT 4708, IT 4738, or IT 1140). Each UPC allows the Taxpayer to make either an estimated payment (“ES” payment) or payment submitted with the tax return (“P” payment). Only one type of payment
can be made on each UPC submitted.
All UPCs can be found on the searchable Tax Forms page by entering “UPC” in the Form Title or Number
field.
The IT 1041 UPC is used by trusts and estates to make either an estimated payment (IT 1041ES Trust or
Estate) or a payment submitted with the trust/estate return (IT 1041P Trust or Estate). When completing the
UPC:
●	Indicate the reporting period by providing the filing period start date and end date in the format mm-ddyy;
●	Specify the appropriate payment type (IT 1041ES Trust or Estate or IT 1041P Trust or Estate);
●	Enter the entity type code in the box above the payment amount (*see codes on instructions page above
UPC);
●	Enter the amount of payment as a whole number without a decimal, as the UPC features a preprinted
“.00”;
●	A FEIN should be entered for a trust. The SSN field should only be used by the estate.
Sample IT 1041 UPC: This form must be included with each check or money order.

Include a Check or Money Order with each IT 1041 UPC
Payable to “Ohio Treasurer of State” with identifying information on the memo line, including:
●	Federal employer identification number (FEIN), or SSN for decedent’s estate only
●	Tax form using the payment (IT 1041)
●	Tax year end for the payment (mm-dd-yy)

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2023 Ohio Form IT 1041
General Instructions
Who must file the IT 1041?
All estates and trusts, including foreign estates and
trusts, that are subject to the Ohio fiduciary income tax
must file the IT 1041 and pay any tax due. All estates
are subject to tax on their Ohio taxable income, while
all trusts are subject to tax on their modified Ohio
taxable income. Generally, estates that file the federal
1041 and reside in Ohio, or earn or receive income
in Ohio, must file the IT 1041. Trusts that file the
federal 1041 or the federal 1040NR and have retained
earnings and earn or receive income that is allocable
or apportionable to Ohio, must file the IT 1041.
Foreign estates and trusts are not necessarily exempt
from Ohio income tax. Instead, Ohio levies its
fiduciary income tax on every estate or trust residing
in or earning or receiving income in Ohio. “Trust” is
specifically defined to include any trust described in
IRC §641- §685 that is not one of the following trusts:
●	Grantor trusts
●	Charitable remainder trusts
●	Retirement trusts
●	Pre-need funeral trusts
●	Qualified funeral trusts
●	Endowment and perpetual care trusts
●	Qualified settlement trust and funds
●	Retirement trust funds
See R.C. 5747.02(A)(1) and (2), 5747.02(D), 5747.01(S),
and 5747.01(AA).
How does the residency of the trust affect the taxation
of the trust?
A trust’s residency status only affects how its modified
nonbusiness income is taxed. A trust’s modified
nonbusiness income is the portion of the trust’s Ohio
taxable income that is not included on schedules
VI – Allocated Qualifying Trust Amounts and VII Apportioned Income Amounts of the IT 1041. Some
examples of modified nonbusiness income that are
taxable to Ohio can be found under the section on this
page labeled “What Trust Income is Subject to Tax?”
Generally, most income reported by a trust is modified
nonbusiness income. A resident trust is required to
pay Ohio income tax on all modified nonbusiness
income but may claim a resident credit on Schedule
IX of the IT 1041. The resident credit equals the lesser
of modified nonbusiness income subjected to tax in
another state, or the amount of tax paid to another
state on that income.
Conversely, a nonresident trust is required to pay Ohio
income tax on the items of modified nonbusiness
income only to the extent they are from property that
is located in Ohio or intangible property used in Ohio.
Additionally, lottery winnings are taxable as modified
nonbusiness income.

IT 1041
Rev. 12/23

See R.C. 5747.01(AA)(3), (4)(c) and 5747.20(B).
Is a trust that only has investment income required
to file?
A resident trust investing only in savings accounts,
certificates of deposit, stocks, bonds, commercial
paper and/or mutual funds will owe Ohio income
tax if the trust had federal taxable income after
distributions. The tax on each resident trust is based
on the trust’s federal taxable income, plus or minus
the adjustments set forth on the IT 1041.
However, a nonresident trust investing only in savings
accounts, certificates of deposit, publicly traded
stocks, bonds, commercial paper and/ or mutual funds
will not owe any Ohio income tax.
See R.C. 5747.01(I)(3), 5747.01(S), 5747.01(AA)(3) and
(4)(c) and 5747.20(B).
If the trust or estate has a loss is it still required to file
an IT 1041?
The trust or estate may still have an IT 1041 filing
requirement, even if it reports a loss on the federal
1041 during the tax year, as adjustments on Schedule II
could result in Ohio taxable income. The trust or estate
is not required to file the IT 1041 if the following three
scenarios apply:
●	The trust or estate’s federal 1041 or federal 1040NR
shows no taxable income or has a negative taxable
income (e.g., simple trusts and most estate tax
returns);
●	The trust or estate did not earn or receive any Ohio
sourced income during the tax year; AND
●	There are no Ohio adjustments that would result
in Ohio taxable income.
See R.C. 5747.02 and 5747.08.
How does a federal §645 election impact the IT
1041?
An election under IRC §645 allows the executor of an
estate and the trustee of a revocable trust to elect
to treat the trust as part of the estate for federal tax
purposes. The beneficiaries of an estate that make a
§645 election must use the federal taxable income
as the starting point for completing the IT 1041. The
estate must also designate the same estate type(s)
selected on the federal 1041.
The estate may only claim deductions and credits
available to an estate on its IT 1041; it cannot claim any
credits or deductions, and should not check any boxes,
available only to trusts. However, the beneficiary can
claim any credits and withholding amounts belonging
to the trust identified in the §645 election. Note: The
estate must include a copy of the federal return when
filing the IT 1041 as evidence of its §645 election.
What Trust Income is Subject to Tax?
A trust is taxed on its “modified Ohio taxable income.”
The modified Ohio taxable income is based on
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IT 1041
Rev. 12/23

the trust’s federal taxable income, subject to the
adjustments on Schedule II of the IT 1041. After
determining its “modified Ohio taxable income” the
trust must determine which of the following types of
income it is required to report:
●	Qualifying trust amount: Capital gains and losses
from the sale, exchange, or other disposition
of equity or ownership interests in, or debt
obligations of, a qualifying investee to the extent
included in the trust’s Ohio taxable income, but
only if the following requirements are satisfied:
●	The book value of the qualifying investee’s
physical assets in this state and everywhere as
of the last day of the qualifying investee’s fiscal
or calendar year ending immediately prior to
the date on which the trust recognizes the gain
or loss available to the trust.
●	The trust owns at least 5% of the qualifying
investee during the previous 10 years.
●	Modified Business Income: Business income
included in a trust’s Ohio taxable income after such
taxable income is first reduced by the qualifying
trust amount, if any.
●	Qualifying Investment Income: acquisition,
ownership, or disposition of intangible property,
loan fees, financing fees, consent fees, waiver fees,
application fees, net management fees, dividend
income, interest income, net capital gains from
the sale or exchange of intangible property, or
distributive shares of income.
●	Modified Nonbusiness Income: Is a portion
of the trust’s Ohio taxable income other than
the qualifying trust amount, and other than
the allocated qualifying trust amount, and
apportioned income amounts; to the extent such
qualifying investment income is not otherwise part
of modified business income. Some examples of
modified nonbusiness income that are taxable to
Ohio include:
●	Capital gains or losses from the sale, exchange
or transfer of real or tangible personal property;
●	Rents and royalties from real or tangible personal
property;
●	Royalties from patents or copyrights;
●	Lottery winnings and gains and/or losses from
the sale or transfer of such winnings.

●	Enter zero on lines 3 and 13; AND
●	Include a copy of the acknowledgment from the
Department that the trust is exempt from Ohio
income tax.
See R.C. 5747.01(EE).
When is the Return Due?
For all trusts and estates, the IT 1041, along with all
supporting documentation such as IT K-1(s), W2s,
1099s and federal 1041 or federal 1040NR, is due by
the date listed in the table below. If any filing due date
set forth falls on a weekend or on a holiday, then the
due date becomes the first business day thereafter.
Filing Extensions
If the trust or estate has a 12/31/2023 calendar year
end, the entity can extend the due date for filing the
IT 1041 to September 30, 2024, provided it qualifies
for an IRS extension of time to file. Ohio does not
have an extension request form but honors the IRS
extension. Include a copy of the IRS extension or IRS
acknowledgement, and/or the extension confirmation
number, if electronically filed. If the trust or estate has a
fiscal taxable year end, it will have a different extension
due date. See the table below for extension due dates.
An extension of time to file does not extend the time
for payment of the tax due. The trust or estate must
make extension payments with the required IT 1041
UPC available at the link Tax Forms, or by searching
for “UPC” in the Form Title or Number field on the TAX
FORMS page at tax.ohio.gov. Interest will accrue on
any tax not paid by the due date, and penalties may
also apply. If the trust or estate has a fiscal year end,
please see the table below. Interest will accrue on any
unpaid tax, and penalties may also apply. If your due
date falls on a Saturday, Sunday, or legal holiday, the
due date is moved to the next business day.
Table 1: TY 2023 Due Dates and Extended Due Dates
Fiscal Year Ends

See R.C. 5747.01(AA) and 5747.02(A)(1).
How should a Qualified Pre-Income Tax Trust complete
the IT 1041?
A trust that made the election to be a qualified preincome tax trust is not subject to Ohio income tax.
However, such a trust must file the IT 1041, as follows,
for informational purposes:
●	Include only pages 1 and 2 of the IT 1041;
●	Check the “qualified pre-income tax trust” box at
the top of page 1;
●	Enter the trust’s federal taxable income on line 1;
●	Deduct the amount entered on line 1 on line 2;
-9-

IRS Due
Date

Ohio Due Date IRS Ext. Due Date Ohio Ext. Due Date

12/31/23 4/15/24 4/15/24

9/30/24

9/30/24

1/31/24 5/15/24 4/15/25

9/30/24

4/15/25

2/28/24 6/15/24 4/15/25 11/30/24

4/15/25

3/31/24 7/15/24 4/15/25 12/30/24

4/15/25

4/30/24 8/15/24 4/15/25

1/31/25

4/15/25

5/31/24 9/15/24 4/15/25

2/28/25

4/15/25

6/30/24 10/15/24 4/15/25

3/31/25

4/15/25

7/31/24 11/15/24 4/15/25

4/30/25

4/30/25

8/31/24 12/15/24 4/15/25

5/31/25

5/31/25

9/30/24 1/15/25 4/15/25

6/30/25

6/30/25

10/31/24 2/15/25 4/15/25

7/31/25

7/31/25

11/30/24 3/15/25 4/15/25

8/31/25

8/31/25

IT 1041
Rev. 12/23

See R.C. 5747.08(G) and Ohio Admin Code 5703-07-05.
The fiscal year ends referenced in the above table may
or may not reflect a 12-month filing period.
Estimated Tax Payments
The trust or estate must make estimated tax payments
with the IT 1041ES Universal Payment Coupon (UPC)
for the entity’s taxable year if the trust or estate’s
estimated tax liability after credits is greater than $500.
The interest penalty applies to estimated payments
not timely made. For more information, see page 9.
Due Dates for Estimated Tax Payments
If your due date falls on a Saturday, Sunday, or legal
holiday, the due date is moved to the next business
day.
Due Date for Estimated Payments

% Cumulative Estimated Payments
Made

On or before the 15th day of the 4th
22.5% of the current year tax liability
month of the taxable year.
On or before the 15th day of the 6th
45% of the current year tax liability
month of the taxable year.
On or before the 15th day of 9th
67.5% of the current year tax liability
month of the taxable year.
On or before the 15th day after the
90% of the current year tax liability
close of the taxable year

The trust or estate must complete two copies of the IT
K-1 for each beneficiary whose income is included on
the IT 1041. One copy of the IT K-1 must be included
when filing the IT 1041. The other copy should be
provided to the beneficiary.
The IT K-1 is available in the searchable Tax Forms
section at tax.ohio.gov. For additional information,
please see the IT K-1 category in the PTE FAQs at tax.
ohio.gov.
Amended Returns
When to Amend
The trust or estate can file an amended IT 1041
to report changes to the originally filed return.
An amended return can result in either a tax due
or a refund based on the changes. Under certain
circumstances, an amended return may be required.
To amend the IT 1041 the trust or estate should file a
new return showing the original amounts for any item
that remains unchanged and reflecting all proposed
changes; indicate that it is amended by checking the
box at the top of page 1.
Please include a copy of the following with the
amended return:
●	Any canceled checks used as payment on the originally
filed return; AND
●	Supporting documentation that reflects the reason(s)
for filing the amended return.

Does Ohio Follow the Alternative Preparer Signature
Procedures?
The Department follows the federal alternative
preparer signature procedures found in federal Notice
2004-54; However, the paid preparer must print (not
sign) his/her name if the taxpayer authorizes the
preparer to discuss the return with the Department.

Note: It may take at least 180 days from the date of
receipt to process the amended return. For additional
information, see tax.ohio.gov for FAQs.

Preparers with a Preparer Tax Identification Number
(PTIN) must provide it on all returns.
See R.C. 5703.262(B) and 5747.08(F).

When not to amend the return
Some common mistakes may not require an amended
return. Some examples include:

Can the Trust or Estate’s Tax Preparer Contact
the Department About the Tax Return?
The fiduciary of the estate or trust can check the box
below the tax preparer’s name on page 2 of the return
to authorize the preparer to:
●	Contact the Department about the status of the
trust or estate’s return, payments, or refund;
●	Provide the Department with information missing
from the trust or estate’s return; AND
●	Respond to inquiries or notices from the
Department related to the return.

●	Math errors;
●	Missing pages or schedules;
●	Demographic errors; OR
●	Missing income statements (W-2, 1099, K-1) or credit
certificates.

See R.C. 5747.08(J).

In these situations, the department will either make
the corrections to the return or contact the trust or
estate to request the needed documentation.
Requesting a refund
The trust or estate may want to amend the return to
request an additional credit, deduction or payment.
Such changes may result in a refund. The trust or estate
has four years from the date of the payment to request
a refund. The trust or estate must include supporting
documentation to substantiate the changes reported
on the amended return. Some common required
documentation includes:

What is the IT K-1?
The IT K-1 allows the trust or estate to report its
income, adjustments, credits, and apportionment
information to its beneficiaries. The information
is used by the trust or estate’s beneficiaries when
completing the IT 1040, IT 1041, IT 4708, or IT 4738.
- 10 -

IT 1041
Rev. 12/23

●	The federal return, including applicable schedules
and attachments;
●	Copies of income statements (W-2, 1099, etc.);
●	IT K-1, or credit certificates;
●	Form IT NRCE.
Reporting additional tax due
The trust or estate should amend the return to
report additional income or reduce a previously
claimed credit or deduction. Such changes may
result in additional tax due. Payment should be
included with the amended return using an IT 1041
UPC payment coupon.

Completing the Applicable
Check Boxes on Page 1 of the Ohio IT 1041
On page 1 of the return, the entity must designate
whether it is an estate or a trust. Trust and estate
types (other than resident, nonresident, irrevocable
or testamentary) are determined by the federal 1041
filing.
Estates must select one or both of the following:
●	Decedent’s estate
●	Bankruptcy estate

Changes to the federal return
If the IRS makes changes to the federal return, either
based on an audit or an amended return, and those
changes affect the Ohio return, the trust or estate is
required to file an amended IT 1041. Do not file the
amended Ohio return until the IRS has finalized the
changes to the federal return. Once the changes are
finalized, please include a copy of all of the following:
●	The federal amended 1041;
●	The IRS acceptance letter; OR
●	The refund check issued to the trust or estate by
the IRS, if applicable
Note: Instead of including a copy of these documents,
the trust or estate may be able to submit a copy of
the IRS Tax Account Transcript reflecting the updated
federal return information.
The amended IT 1041 should be filed no later than 90
days after the IRS completes its review of the federal
return. Failure to file the return within this time period
may result in an assessment or a denial of the refund
claim. The 90 days begins to run when:
●	The period for the federal appeal has expired;
●	The date on the refund issued by the IRS; OR
●	The date a federal settlement agreement is signed.

Trusts must select one or the other of each of the
following:
●	Simple or complex
●	Resident or nonresident
Note: If applicable, the trust should also select one or
more of the following:
●	Irrevocable
●	Testamentary
Trust Residency
A “resident” trust is a trust that in whole or in part
resides in Ohio. If the resident trust resides in part, it
is only a resident with respect to that part. See R.C.
5747.01(I)(3) and information release IT 2003-02.
A trust created at the time of an individual’s death
under a will (testamentary) is a testamentary trust. A
testamentary trust resides in Ohio if the decedent at
the time of death was domiciled in Ohio for Ohio estate
tax purposes (R.C. 5731).
An irrevocable trust resides in Ohio if (i) at least one
“qualifying beneficiary” (R.C. 5747.01(I)(3)(c)) is
domiciled in Ohio for all or a portion of the trust’s
taxable year and (ii) at any time the trust received
assets from one or more of the following:

See R.C. 5747.10.
File Prior to Out of Statute
Ohio’s fiduciary income taxes generally have a fouryear statute of limitations. The Department has four
years to issue an assessment from the later of when
the return was due or filed. The PTE or fiduciary has
four years from the date of the payment to request a
refund. Please see the table below for details.
Tax Year

Due Date

Timely Payment or Withholding Out-of-Statute Date

2019

7/15/20

7/15/24

2020

5/17/21

5/15/25

2021

4/15/22

4/15/26

2022

4/18/23

4/15/27

2023

4/15/24

4/18/28

- 11 -

●	An individual who was domiciled in Ohio for
income tax purposes at the time he/she transferred
assets to the trust; OR
●	An individual who was domiciled in Ohio for income
tax purposes at the time the trust document
became irrevocable even if the individual was not
domiciled in Ohio at the time he/she transferred
the assets to the trust; OR
●	An estate of an individual who at the time of death
was domiciled in Ohio for estate tax purposes; OR
●	An insurance company, pension plan or court
award on account of the death of an individual,
and at the time of the individual’s death either (i)
the individual was domiciled in Ohio for estate tax
purposes or (ii) the owner of the insurance policy
was domiciled in Ohio for income tax purposes.
●	Note: The list above is not all-inclusive. For

IT 1041
Rev. 12/23

additional information, see R.C. 5747.01(I)(3)(a),(e)
and (f).
Estate Residency
An estate is a resident if the decedent was domiciled
in Ohio at the time of death. See R.C.5747.01(I)(2).
Schedule I – Taxable Income, Tax, Payments and
Net Amount Due Calculations
Line 4 – Trusts- Allocated Qualifying Amount
This line must match the summary line 61. Any
difference on these lines will result in a delay in
processing the return and a possible refund reduction
or billing.
Line 5 – Trusts - Apportioned Income

See R.C. 5747.02(C)(3)
Line 12 – Interest Penalty on Underpayment of
Estimated Tax
A trust or estate that does not make timely, sufficient
estimated payments may be subject to the 2210
interest penalty. A trust or estate filing the IT 1041
should use pages 1 and 2 of the Ohio IT/SD 2210 to
determine if an interest penalty is due, and if so the
interest penalty amount. This form is available in the
searchable Tax Forms section of tax.ohio.gov.
The trust or estate will owe an interest penalty if (i) the
Ohio tax due is greater than $500 and (ii) withholdings,
timely estimated payments and refundable credits are
less than either of the following:
●	90% of the 2023 Ohio tax liability; OR
●	100% of the 2022 Ohio tax liability

This line must match the summary line 64. Any
difference on these lines will result in a delay in
processing the return and a possible refund reduction
or billing.

Note: A trust or estate may be subject to the penalty
even if it is due a refund when filing its return.

Line 6 – Trusts - Modified Nonbusiness Income

See R.C. 5747.09(D) and (E).

This line must match the summary line 67. Any
difference on these lines will result in a delay in
processing the return and a possible refund reduction
or billing.

Line 15 – Refundable Business Credits

Line 8 – Tax on Ohio Taxable Income (Estates) or
Modified Ohio Taxable Income (Trusts)
Use Table 2 to compute the tax based upon the
amount on line 3 for estates or line 7 for trusts.
Table 2: TY 2023 Estates and Trusts Income Tax Brackets
and Marginal Tax Rates
TY 2023 Ohio Taxable
Income Brackets

TY 2023 Ohio Tax

not more than

$0

-	 $26,050	

$26,050	 - $100,000	
			
$100,000 - $115,300	
			
More than $115,300	
			

1.38462% of Ohio Taxable Income
$360.69 plus 2.75% of the amount in 		
excess of $26,050
$2,394.32 plus 3.688% of the amount in 		
excess of $100,000
$2,958.58 plus 3.75% of the amount in 		
excess of $115,300

See R.C. 5747.02(A)(3)

Line 10 – Credits from Schedules IV, V, IX and E
●	Estates should enter the sum of lines 55 and 58 of
the IT 1041 and line 11 of the Ohio Schedule E.
●	Trusts should enter the sum of lines 74 of the IT 1041
and line 11 of the Ohio Schedule E.
●	Schedule E, Nonrefundable Business Credits is
available in the searchable Tax Forms section of
tax.ohio.gov.

This line must match line 87, the sum of all refundable
business credits. Any difference on these lines will
result in a delay in processing the return and a possible
refund reduction or billing.
Line 18 – Amount of Line 17 to be Credited Toward
Next Year’s Liability
Beginning with filing periods that start on or
after January 1, 2020 the credit carryforward of
overpayments has been reinstated, however for tax
years 2017-2019 the Department did not permit credit
carryforwards. A credit carryforward is only allowed
on a timely filed, original return; otherwise, any
overpayment will be refunded.
Line 19 – Amount of Line 17 to be Refunded
Interest on Overpayments. Once the return has
been verified, if the refund exceeds one dollar it will
be refunded to the trust or estate. The trust or estate
will receive interest on the refund from the date of
payment until the date of the refund if the amount is
not refunded within 90 days of the later of the return’s
due date, or the date the return was filed.
During the calendar year 2024, the interest rate is 8%.
See R.C. 5747.11(B) and (C)(1).
Line 21 – Interest Due on Late Payment of Tax

Interest is due on any unpaid tax exceeding one dollar
Note: The trust/estate is only entitled to the portion
from the unextended due date until the date the tax
of the credits that relate to the retained earnings in
is paid. An extension of time to file does not extend
the trust/estate.
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IT 1041
Rev. 12/23

the payment due date. The interest rate for calendar
year 2024 is 8%.

Line 24a - Taxes paid to another state or District
of Columbia

See R.C. 5747.08(G).

Enter taxes paid to another state or the District of Columbia if both of the following are true:

Line 22 – Total Amount Due if any
Make payments by:
●	Electronic check through an approved software
program when filing electronically;
●	Sending a personal check/money order with the
Ohio UPC;
●	Electronic funds transfer (EFT) through the Ohio
Treasurer of State.

●	The tax was enacted for purposes of complying with
IRS notice 2020-75; AND
●	The tax was deducted in computing the federal Ohio
taxable income.
See R.C. 5747.01(S)(16).
Line 25 – Electing Small Business Trust (ESBT)
Income

For questions regarding the EFT payment program,
see the Electronic Funds Transfer Via Ohio Treasurer
of State (TOS) at Business Tax - Pay Online on our
website at tax.ohio.gov.

Add the distributive share of income from an S
corporation. This amount is apportionable business
income and must be included on Schedule VII. Do not
include on Schedule VIII.

If $1.00 or less is owed, no payment is necessary.

Note: Such income is not included in the trust’s
federal taxable income.

Schedule II – Adjustments to Federal
Taxable Income

See R.C. 5747.01(S)(13).

Additions
The following apply to both trusts and estates except
where noted.
Line 23 – Federal and/or Non-Ohio State or
Local Government Interest and Dividends Not
Distributed
Enter the following:
●	Interest and/or dividends paid on obligations or
securities from a non-Ohio state; AND/OR
●	Interest and/or dividends paid on obligations or
securities from a non-Ohio local government.
Do not include:
●	Any amounts already included in federal taxable
income;
●	Interest and/or dividends paid on obligations or
securities from Ohio;
●	Interest and/or dividends paid on obligations or
securities from an Ohio local government; AND
●	Interest and/or dividends paid on obligations or
securities from a U.S. territory.
See R.C. 5747.01(S)(1) and (2).
Line 24 – Pass-Through Entity Taxes Paid/Electing
Pass-Through Entity Taxes Paid
Enter the proportionate share of tax paid by a
pass-through entity on the IT 1140 or an electing
pass-through entity on the IT 4738 to the extent not
included in computing taxable income or Ohio taxable
income. These taxes may be reported to the trust/
estate on an IT K-1 or provided with the federal K-1.
See R.C. 5747.01(S)(11) and R.C. 5747.01(S)(15).

Line 26 – Losses from the Sale or Disposition of
Ohio Public Obligations
Enter any loss resulting from the sale/disposition of
Ohio public obligations to the extent that such losses
have been deducted in determining federal taxable
income.
See R.C. 5747.01(S)(7) and 5709.76.
Line 27 – Reimbursement of Expenses
Enter reimbursements received in 2023 for any
expenses that the trust/estate deducted on a
previously filed Ohio fiduciary income tax return if
the amount of the reimbursement was not included
in federal taxable income.
See R.C. 5747.01(S)(9)(b).
Line 29 – Personal Exemption (Estates Only)
Enter the amount of the personal exemption allowed
to the estate pursuant to I.R.C. 642(b).
See R.C. 5747.01(S)(3).
Federal Conformity Adjustments (Estates and Trusts).
Line 29 is also for federal conformity adjustments,
however, the trust/estate must make all other
required adjustments for this line.
For more information, see Ohio Conformity Updates
at tax.ohio.gov.

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IT 1041
Rev. 12/23

Line 30 – Expenses Claimed on Ohio Estate
Return	
This line is no longer applicable. Enter -0- on this line.
See R.C. 5747.01(S)(8).
Deductions
The following apply to both trusts and estates, except
where noted. Deduct the income items described
below only to the extent that these amounts have
not already been deducted or excluded from federal
taxable income.
Line 32 – Federal Interest and Dividends Exempt
from State Taxation
Enter interest and dividend income, to the extent
included in federal taxable income, from obligations
issued by the United States government or its
possessions/territories that are exempt from Ohio
tax by federal law. A comprehensive list of deductible
interest and dividends can be found in Information
Release IT 1992-01 – Exempt Federal Interest
Income.
Examples of interest income that are not deductible:
●	Interest paid by the IRS on a federal income tax
refund;
●	Interest income from Fannie Maes or Ginnie Maes.
See R.C. 5747.01(S)(4).
Line 33 – State and Municipal Income Tax Refunds
Enter the amount of state and/or municipal income
tax refunds included in federal taxable income for
the taxable year of this return if the refunds relate to
taxes previously claimed as itemized deductions on
the decedent’s federal income tax return.
See R.C. 5747.01(S)(9)(a).
Line 34 – Losses from an ESBT
Deduct the distributive share of loss from an S
corporation if the loss has not been directly or
indirectly deducted in computing the trust’s federal
taxable income

!
CAUTION

This amount is apportionable business
income and must be included on Schedule
VII. Do not include on Schedule VIII.

Line 35 – Wage and Salary Expense Not Previously
Deducted
Deduct the amount reported as work opportunity tax
credit on the federal income tax return.
See R.C. 5747.01(S)(5).

Line 36 – Interest/Gains from Ohio Public Obligations
Deduct interest income earned from Ohio public
obligations and Ohio purchase obligations if the
interest income was included in the federal taxable
income. The trust/estate can also deduct any gains
resulting from the sale or disposition of Ohio public
obligations to the extent that the gain was included
in the federal taxable income.
The trust/estate can also deduct income from a certain
transfer agreement or an enterprise transferred
under that agreement if the income was included in
the federal taxable income. See R.C. 5747.01(S)(6),
5747.01(S)(7) and 5709.76.
Line 37 – Refund or Reimbursements of a Prior Year
Deduction
Deduct amounts included in the federal taxable
income that represent refunds or reimbursements of
expenses that were previously deducted on the federal
1041 return. Do not include any amounts shown on
line 31. See R.C. 5747.01(S)(9)(a).
Federal Conformity Adjustments. Line 37 is also for
federal conformity adjustments, however, the trust/
estate must make all other required adjustments for
this line.
For more information, see Ohio Conformity Updates
at tax.ohio.gov.
Line 38 – Farm Income (Trusts Only)	
Deduct any amount that a trust was required to report
as farm income on its federal 1041 tax return but only
if the assets of the trust directly or indirectly include
at least 10 acres of land.
See R.C. 5747.01(S)(12) and 5713.30.
Line 39 – IRC §168(k) bonus depreciation and §179
expense add-backs
For taxable years ending on or after October 3, 2023,
the depreciation add-back is no longer required on
the IT 1041. However, deductions for add-backs
previously made are still permitted. Use the table on
line 89 to calculate the current deductions from the
prior year add-back amounts. Deduct:
●	1/5 of prior year 5/6 add-backs,
●	1/2 of prior year 2/3 add-backs, AND/OR
●	1/6 of prior year 6/6 add-backs,
of applicable §168(k) bonus depreciation and §179
expense add-backs on a prior year’s IT 1041. The
deduction must be taken in equal increments in
consecutive tax years. If the deduction is missed in a
taxable year, any unused portion from any given tax
year is not eligible to be carried forward. Instead, the

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IT 1041
Rev. 12/23

PTE would have to amend the prior years’ returns to
claim the deduction.

!
CAUTION

Credit Amount
Retirement income included in Estates’ taxable income

To the extent this amount is apportionable,
it should be included on Schedule VII. If
the amount is apportionable, do not
include on Schedule VIII.

Deduct only amounts that were added back by the
trust/estate on a prior year’s IT 1041. This deduction
is available even if the asset is no longer owned by
the trust/estate.
See R.C. 5747.01(S)(14) and (A)(18).
Line 40 – Repayment of Income Reported in a Prior
Year
Deduct amounts, described in section 1341(a)(2) of the
Internal Revenue Code, that the trust/estate repaid in
the current tax year that was received and included in
federal taxable income in a prior year if:
●	The trust/estate recognized the amount as income
on the federal return in a prior year;
●	The trust/estate has not deducted this income on
any other line on the Ohio income tax return for any
tax year; AND
●	In the year the trust/estate recognized the income,
it did not qualify for either the Ohio resident or
nonresident credit.
See R.C. 5747.01(S)(10).
Schedule III – Estate Credits
The credits listed on Schedule III are only available
to an estate. They correspond to the credits found on
Ohio’s individual income tax return (IT 1040).
Distribution of Credits. When calculating estate
credits, do not include any credit amounts that are
allocable to a beneficiary. This includes credits based
on income that is distributed to a beneficiary instead
of being retained by the estate.
See R.C. 5747.01(S)(13).
Line 43 – Retirement Income Credit
To qualify for this credit, all of the following must be
true:
●	The decedent must have received retirement income
from a pension, profit sharing or retirement plan
(such as traditional IRAs, 401(k) plans);
●	This income is included in the estate’s federal
taxable income (e.g., it was not distributed to any
beneficiary);
●	This income was received on account of the
decedent’s retirement; AND
●	The decedent has not previously taken the Ohio
lump sum retirement credit.

$0

–

$ 501

–

$ 1,501

–

$ 3,001

–

$ 5,001

–

$ 8,001

or more

Retirement
Income Credit

$ 500
$ 1,500
$ 3,000
$ 5,000
$ 8,000

0
$ 25
$ 50
$ 80
$ 130
$ 200

The credit is based on the total retirement income
included the estate’s taxable income.
The maximum credit per return is $200.
See R.C. 5747.055(B).
Line 44 – Lump Sum Retirement Credit
Note: If the estate takes this credit, it cannot take the
retirement income credit on this year’s return or any
future return.
To qualify for this credit, all of the following must be
true:
●	The decedent must have received a total lump sum
distribution on account of retirement;
●	The distribution must have come from a qualified
pension, retirement or profit sharing plan;
●	This income was included in the estate’s federal
taxable income (e.g. it was not distributed to any
beneficiary); AND
●	The decedent has not previously claimed this credit.
Use the Lump Sum Worksheet on page 23 to calculate
this credit.
See R.C. 5747.055(C).
Line 45 – Senior Citizen’s Credit
To qualify for this credit, both of the following must
be true:
●	The decedent was at least 65 as of the date of death;
AND
●	The decedent has not previously taken the Ohio
lump sum distribution credit.
The credit is equal to $50 per return.
See R.C. 5747.055(F).
Line 46 – Lump Sum Distribution Credit
Note: If the estate takes this credit, it cannot take the
$50 senior citizen credit on this year’s return or any
future return.
To qualify for this credit, all of the following must be
true:

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IT 1041
Rev. 12/23

●	The decedent was at least 65 as of the date of death;
●	The decedent must have received a total lump sum
distribution from a qualified pension, retirement or
profit sharing plan;
●	This income was included in the estate’s federal
taxable income (e.g., it was not distributed to any
beneficiary); AND
●	The decedent has not previously claimed this credit.
Use the Lump Sum Worksheet on page 23 to calculate
this credit.
See R.C. 5747.055(G).
Line 47 – Child and Dependent Care Credit
To qualify for this credit the decedent must have
claimed the federal “credit for child and dependent
care expenses” on federal form 2441. See Child and
Dependent Care Credit Worksheet on page 22.
See R.C. 5747.054.
Line 48 - Campaign Contribution Credit for Ohio
Statewide Office or General Assembly
An estate may claim this credit if the estate contributed
money to the campaign committee of a candidate for
any of the following Ohio offices:
●	Governor / Lieutenant governor
●	Secretary of state
●	Auditor of state
●	Treasurer of state
●	Attorney general
●	Chief justice of the Ohio Supreme Court
●	Justice of the Ohio Supreme Court
●	Ohio Board of Education
●	Ohio Senate
●	Ohio House of Representatives
The credit equals the amount contributed during the
tax year up to $50 per return. Contributions to local
candidates (such as city or county officials) or federal
candidates (such as President or U.S. Senator) do not
qualify for this credit.
48a – Scholarship Donation Credit
To qualify for this credit, the estate must make a monetary donation on or before the unextended due date
of the return to an eligible scholarship granting organization (SGO). The credit equals the lesser of $750 or
the total amount you donated to SGOs during the tax
year. You may also include amounts donated prior to
the unextended return due date. For a list of eligible
SGOs, see tax.ohio.gov/SGO. See also R.C. 5747.73.
Line 49 – Credit for Work-Based Learning Experiences
and/or Ohio Adoption Credit Carryforward

the tax year for which the credit is awarded. For more
information about the requirements for the credit,
visit education.ohio.gov.
See R.C. 5747.057.
The Ohio adoption credit was repealed and is no
longer available. However, this nonrefundable credit
had a five-year carryforward. Therefore, you may
continue to claim any unused credit for the five-year
period or until it is fully utilized.
See former R.C. 5747.37, repealed in 2023 Am. Sub.
H.B. No. 45.
Schedule IV – Estate Ohio Resident Credit
To determine the income taxes paid to another state or
the District of Columbia, the estate must use IT RCTE.
See page 16 for the IT RCTE instructions.
The credit equals the lesser of the income taxes paid
to another state or the District of Columbia, or the
portion of the Ohio tax liability attributable to income
taxed by another state. Nonresident estates are not
entitled to this credit.
See R.C. 5747.05(B).
Schedule V – Estate Nonresident Credit
Nonresident estates should enter the portion of Ohio
taxable income on line 3 that is not apportioned or
allocated to Ohio. To determine the portion of the Ohio
taxable income (IT 1041, line 3) that is not apportioned
or allocated to Ohio, the estate must use form IT NRCE
obtained at tax.ohio.gov. Include this form with the
IT 1041.
See R.C. 5747.05(A), 5747.20, 5747.21 and 5747.231.
Schedule E – Nonrefundable Business Credits
Use Schedule E to claim nonrefundable business
credits. The trust/estate may obtain Schedule E at
tax.ohio.gov.

!
CAUTION

Trust/estate is only entitled to the portion
of the Schedule E credit that relates to the
retained earnings in the trust/estate.

See R.C. 5747.02(C)(3).
Schedule VI – Allocated Qualifying Trust Amounts
Line 59 – Allocated Qualifying Trust Amounts
A trust’s income is a “qualifying trust amount” if all of
the following are true:
●	The income is included in the trust’s Ohio taxable
income (IT 1041, line 3);
●	The income is a capital gain or loss from the
sale, exchange or other disposition of either an

This Credit for Work-Based Learning Experiences is
granted by the Ohio Department of Education (ODE).
To claim the credit, attach a copy of the certificate
from ODE that indicates the amount of the credit and
- 16 -

IT 1041
Rev. 12/23

●	Qualifying investment income/loss: Income
attributable to transaction fees for the acquisition,
ownership, or disposition of intangible property,
including the following:
●	Loan fees;
●	Financing fees;
●	Consent fees;
●	Waiver fees;
●	Application fees;
●	Net management fees;
●	Dividend income;
●	Interest income;
●	Net capital gains from the sale, exchange, or
other disposition of intangible property; AND
●	All types and classifications of income from
distributive shares of income from other PTEs.
●	This list is not all inclusive. See R.C. 5747.012.

ownership interest in, or debt obligations of, a
qualifying investee;
●	The trust owns at least 5% of the qualifying
investee at any time during the 10-year period
ending on the last day of the trust’s tax year; AND
●	The book value of the qualifying investee’s physical
assets is available.
A “qualifying investee” is any entity in which a trust
has an ownership interest, or an entity or unit of
government in which the trust owns debt obligations.
Information is “available” if it can be obtained by the
trust’s due date for filing the IT 1041.
Most income is not a qualifying trust amount. Instead,
it is modified business income, qualifying investment
income, or modified nonbusiness income.
See R.C. 5747.01(AA)(2),(5) and (6) and 5747.011. See
also T. Ryan Legg Irrevocable Trust v. Testa, 2016Ohio-8418.
Line 60 - Percentage of Closely Held Investee’s
Physical Assets Located Within Ohio
The percentage is calculated as follows:

See R.C. 5747.01(AA)(1) and 5747.013
Schedule VIII – Allocated Nonbusiness
Income for Trusts
Line 65 - Resident Trusts: Portion of Ohio Taxable
Income

Net book value of the qualifying investees physical
assets in Ohio
Net book value of the qualifying investees physical
assets everywhere

Resident trusts enter the trust’s Ohio taxable income
(line 3) not reported on lines 59 or 62.

“Net book value” is the asset’s cost minus its
accumulated depreciation. If the qualifying trust
amount from capital gains/losses was recognized
due to the sale, exchange or other disposition of more
than one investment, then the fiduciary must make a
separate calculation for each gain or loss.

Nonresident trusts enter the following types of
nonbusiness income to the extent included in the
trust’s Ohio taxable income (line 3) and not reported
on lines 59 or 62:

Line 66 - Nonresident Trusts: Trust’s Portion of Ohio
Taxable Income

●	Capital gains or losses from the sale, exchange or
transfer of Ohio real property and/or Ohio-based
tangible personal property;
●	Rents and royalties from Ohio real property and/
or tangible personal property used in Ohio,
●	Patents and copyright royalties used by the payor
in Ohio; AND
●	Ohio Lottery Commission winnings and gains
and/or losses from the sale or transfer of such
winnings.

Note: If the qualifying investee is a member of
a qualifying controlled group, as defined in R.C.
5733.04(M), then special rules apply for purposes of
calculating the Ohio ratio.
See R.C. 5747.01(AA)(5)
Schedule VII – Apportioned Income for Trusts
Line 62 – Business Income and Qualifying Investment
Income
Enter the trust’s portion of Ohio taxable income (line
3) not included on line 59 to the extent such income
is either of the following:
●	Modified Business income/loss: Income included
in a trust’s Ohio taxable income after such
taxable income is first reduced by the qualifying
trust amount, if