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Ohio Fiduciary Tax - Form IT1041

It's The Law

The Ohio Form IT-1041 is not new, but the law mandating its filing is. If you read the statutory language below, you'll note that all decedents' estates that earn income must file fiduciary income tax return. Also note that there in no minimum amount of income. Any income to a decedent's estate mandates filing. How many estates are there that do not have at least one interest-bearing account?

The Statute

Ohio law, Amended Substitute Senate Bill No. 261, 124th General Assembly, imposes for taxable years beginning in 2002, 2003 and 2004 an income tax on most trusts and estates.

Estates. All estates residing or earning income in Ohio must file an Ohio Fiduciary Income Tax Return.

Trusts. All trusts meeting ANY ONE or more of the following requirements must file:

  • The trust resides in Ohio, or
  • The trust earns or receives income in Ohio, or
  • The trust earns/receives lottery winnings paid by the Lottery Commission, or
  • The trust otherwise has a nexus with or in Ohio under the Constitution or the United States.

To narrow the rather wide scope of the foregoing filing requirements, there's a number of exemptions for grantor, charitable remainder, retirement, and a few other trusts. Also exempt are trusts that meet all four criteria contained in the Ohio Department of Taxation IT 1041 instructional requirements.  You can perform an analysis as to whether a tax return is required or be safe and protect your client by filing a return. What would you do? This avoid determining whether an exemption is applicable and the consequences of guessing wrong.

Do a Return in Seconds

If you have U.S. Income Tax for Estates & Trusts (W1041) preparing a picture-perfect, professional Ohio return takes only seconds because you can import the tax information from the federal program (W1041) directly into Ohio Fiduciary Tax (WIT1041)!

Ohio Fiduciary Tax (WIT1041)

Ohio Fiduciary Tax (WIT1041) resembles our ever-popular United States Income Tax for Estates and Trusts (W1041). It's perfect for completing the kinds of returns that law offices typically handle. Budget-priced at $49.99, it pays for itself with the first return you prepare. It prints the entire basic form set and performs all calculations automatically.



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