IRS Form 1041-ES – IRS Forms, Instructions, Pubs 2026

IRS Form 1041-ES – IRS Forms, Instructions, Pubs 2026 – Navigating tax obligations for estates and trusts can be complex, but IRS Form 1041-ES simplifies the process of paying estimated income taxes. Whether you’re a fiduciary managing a decedent’s estate or overseeing a trust, understanding this form is crucial to avoid penalties and ensure compliance. In this article, we’ll break down what Form 1041-ES is, who needs to use it, how to calculate and pay estimated taxes, due dates for 2026, and more. This guide is based on official IRS resources to provide accurate, up-to-date information.

What Is IRS Form 1041-ES?

IRS Form 1041-ES, titled “Estimated Income Tax for Estates and Trusts,” is a payment voucher system used to calculate and remit estimated income taxes throughout the year. Unlike annual tax returns, estimated taxes help pay taxes on income as it’s earned, preventing a large lump-sum payment at year-end. The form includes four payment vouchers and an estimated tax worksheet to help fiduciaries figure the required payments.

Estimated tax represents the amount an estate or trust anticipates owing for the year, after accounting for any withheld taxes and credits. This applies to domestic estates and trusts, including those for decedents, bankruptcy estates, and certain specialized trusts like qualified disability trusts. It’s essential for entities that generate income from investments, rentals, or other sources not subject to withholding.

Who Needs to File Form 1041-ES?

Not every estate or trust must make estimated tax payments. You should use Form 1041-ES if:

  • The estate or trust expects to owe at least $1,000 in taxes for 2026 after subtracting withholdings and credits.
  • Expected withholdings and credits are less than the smaller of 90% of the 2026 tax liability (or 66 2/3% for farmers and fishermen) or 100% of the tax shown on the 2025 return (110% if adjusted gross income exceeds $150,000 and less than 2/3 of gross income is from farming or fishing).

Exceptions include:

  • Estates or trusts with no tax liability on their full 2025 return.
  • Estates and trusts in existence for less than two years after the decedent’s death.

Fiduciaries of qualified funeral trusts have no exemption amount, and special rules apply to electing Alaska Native Settlement Trusts. If you’re unsure, consult IRS Publication 505 for detailed guidance on tax withholding and estimated taxes.

How to Calculate Estimated Tax Using the Worksheet?

The Estimated Tax Worksheet on Form 1041-ES helps determine the required payments. Here’s a step-by-step overview:

  1. Expected Adjusted Total Income (Line 1): Enter the anticipated total income for 2026.
  2. Income Distribution Deduction (Line 2): Deduct amounts expected to be distributed to beneficiaries.
  3. Estate Tax Deduction (Line 3): Include any applicable estate tax deductions.
  4. Exemption (Line 4): $600 for decedents’ estates; $300 for trusts distributing all income currently; $5,300 for qualified disability trusts (no phaseout); $100 for other trusts; $0 for qualified funeral trusts.
  5. Taxable Income (Line 6): Subtract Lines 2–4 from Line 1.
  6. Tax Computation (Line 7): Use the 2026 Tax Rate Schedule or Capital Gains Worksheet if applicable.
    • 2026 Tax Rate Schedule
    • For capital gains, rates are 0%, 15%, or 20% depending on income thresholds.
  7. Alternative Minimum Tax and Other Taxes (Lines 8–13): Add AMT, net investment income tax (3.8% on undistributed net investment income over $16,000 AGI threshold), recapture taxes, and household employment taxes.
  8. Required Annual Payment (Line 14): Generally 90% of Line 13 or 100%/110% of 2025 tax.
  9. Estimated Tax Owed (Line 16): Subtract withholdings and credits from Line 14 (no payments if under $1,000).
  10. Installment Amount (Line 17): Divide Line 16 by 4 for equal quarterly payments.

If income is uneven, use the annualized income installment method from IRS Publication 505 to adjust payments and potentially reduce penalties.

Due Dates for Estimated Tax Payments in 2026

For calendar-year estates and trusts, payments are due in four installments:

  • Voucher 1: April 15, 2026
  • Voucher 2: June 15, 2026
  • Voucher 3: September 15, 2026
  • Voucher 4: January 15, 2027

You can pay the full amount by April 15, 2026, or file Form 1041 by January 31, 2027, and pay any balance then (skipping the January payment). For fiscal-year filers, due dates are the 15th day of the 4th, 6th, and 9th months of the tax year, and the 1st month of the following year.

Farmers and fishermen with at least 2/3 of gross income from these activities can pay all by January 15, 2027, or file Form 1041 by March 1, 2027. If a due date falls on a weekend or holiday, it’s shifted to the next business day.

How to Make Payments with Form 1041-ES

  • Complete the Voucher: Include the estate/trust name, EIN, fiduciary details, and payment amount. Do not include 2025 overpayments here.
  • Payment Methods:
    • Mail check or money order (payable to “United States Treasury”) with the voucher to: Internal Revenue Service, P.O. Box 932400, Louisville, KY 40293-2400. Note the EIN and “2026 Form 1041-ES” on the check.
    • Electronic: Use EFTPS (enroll at www.EFTPS.gov or call 800-555-4477). Deposits due by 8 p.m. ET the day before the deadline.
  • Large Payments: Split checks over $100 million or use electronic methods.
  • First-Time Filers: Use the provided package; preprinted vouchers will arrive after the first payment.

You can elect to allocate payments to beneficiaries using Form 1041-T, filed by the 65th day after the tax year ends.

Penalties for Underpayment and Key Exceptions

Underpaying estimated taxes may result in penalties, calculated based on the underpayment amount and duration. However, penalties can be waived under certain conditions outlined in Publication 505. To avoid penalties, ensure payments meet the safe harbor rules (90% of current-year tax or 100%/110% of prior-year tax).

If estimates change, refigure using Worksheet 2-7 from Publication 505 for remaining installments. Keep records of all payments, including dates and amounts, for accurate tracking.

Tips for Accurate Filing and Compliance

  • Review IRS Publication 505 for advanced topics like the annualized method.
  • Consult a tax professional if dealing with complex trusts or large estates.
  • Stay updated on changes; the highest tax rate for trusts in 2026 is 37%, and the NIIT threshold is $16,000.
  • For related forms, see Form 1041 (annual return) and Form 1041-T (allocation to beneficiaries).

Where to Download IRS Form 1041-ES?

You can download the latest version of Form 1041-ES directly from the IRS website at https://www.irs.gov/pub/irs-pdf/f1041es.pdf. Always use the most current form to ensure compliance with 2026 rules.

By properly using Form 1041-ES, fiduciaries can manage tax liabilities efficiently and avoid surprises. If you have specific questions, visit IRS.gov or contact a qualified advisor for personalized advice.