Ohio Fiduciary Income Tax Return Instructions

Fiduciary Income Tax Return Instructions
Form IT 1041 Instructions
IT 1041
Rev. 12/25

Table of Contents
A
Adjustments to Federal Income	������������������������������������������� 12-13
Allocating Income................................................................. 14-15
Amended Returns....................................................................... 9
Apportionment Factor........................................................... 15-17

B

Bankruptcy Estates.............................................................. 10-11
Beneficiary Information	������������������������������������������������������������� 20
Bonus Depreciation.............................................................. 13-14

C
Child & Dependent Care Credit Worksheet	������������������������������ 34

D
Due Dates................................................................................ 8-9

E
Entity Designation..................................................................... 10

F
Filing Tips.................................................................................... 3

G
General Instructions............................................................... 7-11

H
Highlights for 2025...................................................................... 2

I

Interest & Penalties....................................................................11
IT K-1 Instructions................................................................ 27-31

L

Lump Sum Distribution Credit Worksheet................................. 34
Lump Sum Retirement Credit Worksheet.................................. 33

M

Matching Allocation Based on Distributions	.............................. 19
Matching Expenses & Loss Amounts	��������������������������������������� 21

N

Nonrefundable Business Credits	����������������������������������� 11, 20-25
Nonresident Credit (Estates)	���������������������������������������������������� 24

P
Payment Options...................................................................... 5-6

R

Refundable Business Credits	���������������������������������������� 15, 25-26
Refunds..................................................................................... 12
Resident Credit Calculation (IT RCTE)	�������������������������������� 24-25

S
Schedule of Credits Instructions (NEW)	������������������������������ 20-26

T

Tax Brackets...............................................................................11
Taxable Income, Tax, Payments & Net Amount Due	����������� 11-12
Taxpayer Assistance	������������������������������������������������������������������� 1

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. 42 U.S.C. 405 and Ohio Revised Code
5703.057 and 5747.08 authorize us to request this information. We need
your Social Security number to administer this tax.

IT 1041
Rev. 12/25

Taxpayer Assistance
Contact Us

Online Resources

Examiners are available by phone and for in-person
visits to the Welcome Center during the Department’s
normal business hours of 8:00 a.m. to 5:00 p.m.,
Monday through Friday, excluding holidays.

OH|TAX eServices – Create a username and password
to securely file returns, make payments, view and
respond to notices, and more at tax.ohio.gov/OHTAX.

	
	

Phone – Call 1-888-405-4039* to speak to an 	
examiner during normal business hours.

Forms – Find all pass-through entity and fiduciary
income tax forms (including fill-in versions) at tax.
ohio.gov/forms. You can also request forms anytime
by calling 1-888-405-4039*.

Welcome Center – Get assistance in person by 	
visiting us at:
Pilot – Pilot is a virtual assistant, available 24/7 to
answer questions for all tax types.
	
4485 Northland Ridge Blvd
	
Columbus OH 43229-6596
Information Releases – Visit tax.ohio.gov/info to
find detailed analyses of certain tax topics such as
	
All visitors to the Welcome Center must 		
trust residency and nexus standards.
	
present a photo I.D. such as a current driver's 	
	
license, state or military I.D., or passport.
Tax Alerts – Sign up at tax.ohio.gov/taxalerts
to receive tax updates and reminders from the
	
Appointments - While appointments are not 	 Department via email.
	
required, you can schedule a phone call back 	
	
or a Welcome Center visit at tax.ohio.gov/		
Ohio Virtual Tax Academy – View webinars presented
	
help-center.
by the Department on Ohio’s state taxes at tax.ohio.
gov/OVTA.
	
Email – Visit tax.ohio.gov/OHTAX to send a 	
	
message from your OH|TAX account or visit 	
*Persons who use text telephones or adaptive
	
tax.ohio.gov/email.
telephone equipment – Contact the Ohio Relay
	
Send messages directly to the PTE & Fiduciary Service at 7-1-1 or 1-800-750-0750 and give the
	
Income Tax Division at Pass-ThroughEntity@ communication assistant the phone number you
	tax.ohio.gov.
wish to contact.
	
	

	

Mail – Write to the Department at:

	
	
	

Ohio Department of Taxation
P.O. Box 181140
Columbus OH 43218-1140

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IT 1041
Rev. 12/25

Highlights for 2025
Tax Bracket Update
The tax year 2025 income tax table for estates and
trusts has been updated. The highest rate was
reduced to 3.125%. For details of all changes, see
the updated tax brackets on page 11.
See R.C. 5747.02(A).
	New Transformational Mixed Use Development
Credit
This credit is granted by the Ohio Department of
Development (ODOD). To claim this credit, you must
attach a copy of the certificate from ODOD that indicates
the amount of credit and the tax year for which the
credit is awarded. Additionally, if this credit is based
on your ownership of a pass-through entity that holds
the certificate, you must also include documentation
showing your portion of the credit. To the extent that
this credit exceeds your tax liability, any remaining
balance can be carried forward up to five years.
No credit may be claimed for certificates issued prior
to September 30, 2025.
For more information about the requirements for this
credit, visit development.ohio.gov, or call 1-800-8481300. See R.C. 122.09 and 5747.87.
Bonus Depreciation Restored
The IRC §168(k) bonus depreciation and §179
expense add-back has been restored for taxable years
beginning on or after January 1, 2025. Note: No addback is required for taxable years ending on or after
October 3, 2023 and before January 1, 2025. For more
details including how to report deductions from prioryear add-backs, see pages 13 and 14.
See R.C. 5747.01(S)(14).
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 available at tax.ohio.gov/forms.

Pass-Through Entity and Fiduciary Income Tax
Schedule of Credits
See the new PTE and Fiduciary Income Tax Schedule of
Credits for a full list of nonrefundable and refundable
business credits claimable on the IT 1041. The form is
available at tax.ohio.gov/forms.
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 at tax.ohio.gov/forms.
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 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 at tax.
ohio.gov/forms.
Electronic Filing and Payments
Starting November 12, 2025, fiduciary filers can file IT
1041 returns and make and schedule payments using
the OH|TAX eServices portal. No fees exist for these
filing and payment options; however, an account is
required for filing and account access. Visit tax.ohio.
gov/login to create an account, start a return, and/or
make or schedule a payment.
The IT 1041 can also 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.

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IT 1041
Rev. 12/25

Filing Tips
Use 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 “Check below if address changed” box next to the zip code on page one when filing the
return, login to your OH|TAX eServices account to update your address on file, or visit the Business Address
Update page on tax.ohio.gov.
Verify the IT 1041 and OUPCs are for the Correct Tax Year
Verify the OUPC reflects the correct name, address and federal employer identification number (FEIN) for the
correct application of the payment. IT 1041 filers should file the return, and complete the OUPC’s tax year
field with the year (YYYY) that coincides with the start of the tax year. For example, if the fiduciary has a tax
year starting November 1, 2024 and ending October 31, 2025, the fiduciary should file the 2024 IT 1041 and
complete the OUPC Tax Year as 2024.
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.
Reporting the Fiduciary’s FEIN Correctly
Do not enter the decedent’s Social Security Number (SSN) in the Federal Employer Identification Number (FEIN)
field (estate filers). Contact the IRS to obtain a FEIN before filing the IT 1041. All questions about obtaining a
FEIN should be directed to the IRS.
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 Tax Return Schedules
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 II
●	Apportioned modified business income and qualifying investment income on Schedule III
●	Allocated modified nonbusiness income on Schedule IV
Trust income categorized incorrectly may result in a potential billing notice or refund reduction.

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IT 1041
Rev. 12/25

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.
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.
●	Line 9: Report nonrefundable business credits total from PTE/FI Schedule of Credits (include copy and
applicable certificate(s)/IT K-1s)
●	Line 13: Report Ohio IT 1041 estimated (OUPC/electronic) payments, prior year overpayment claimed on
this return, and amounts previously paid with an original and/or amended return
●	Line 15: Report refundable business credits total from PTE/FI Schedule of Credits (include copy and
applicable certificate(s))
●	Line 16: [Amended Return ONLY] Enter the overpayment previously requested on original and/or
amended return
Use the new Pass-Through Entity and Fiduciary Income Tax Schedule of Credits to report all refundable and
nonrefundable credits, calculate total amounts, then report totals on applicable lines of the IT 1041. See details
in instructions. (The Schedule of Credits replaces the Schedule E form for reporting nonrefundable credits
beginning in tax year 2025.)
Calculate Resident Tax Credit on Trust’s Modified Nonbusiness Income
Include only the modified nonbusiness income in the calculation of the resident trust tax credit on the IT RCTE
- Ohio Trust/Estates Resident Credit Calculation form and report the total on the Pass-Through Entity and
Fiduciary Income Tax Schedule of Credits. Total nonrefundable business credits are then reported on Line 9
of the IT 1041. 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(B)(3).

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IT 1041
Rev. 12/25

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 at tax.ohio.gov/forms. 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)
●	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.	 OH|TAX eServices: Pass-through entity and fiduciary income tax filers can make and schedule payments
in the OH|TAX eServices system as both a logged-in user and as a guest user. At this time, PTE and fiduciary
filers do not have the option to make an online credit card payment. Taxpayers can use an electronic check
(ACH debit) to make the following payments online:
●	Bill & Assessment Payment – Select to pay a specific bill
●	Estimated, Extension, or Return Payment – Select to make a payment for a specific tax year
•		Note: Taxpayers making payments for their current year tax balance due should use the “Return Payment” option
●	Audit Payment – Select to pay towards an audit
●	Account Payment – Select to pay multiple outstanding balances at once
Please allow 2-3 business days for recent payment activity to appear on your account. For specific instructions for making an electronic payment in OH|TAX eServices, see the Make and Schedule Payments job aid at
tax.ohio.gov.
2.	 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 1-877-338-6446.
●	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 through the Ohio Treasurer of State (TOS).
●	Visit the Ohio Treasurer of State website at tos.ohio.gov to access the applicable IT 1041 form-specific 		
information page with TOS routing/account numbers and codes/format the financial institution must 		
use to issue the ACH credit.
3.	 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
(OUPC) based on the form filed. All OUPCs can be found at tax.ohio.gov/forms by entering “OUPC” in the
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Rev. 12/25

Form Title or Number field. Please mail the payment and OUPC to the address on the OUPC or hand deliver
to our self-service walk-in center.
4.	 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. make and schedule payments in the OH|TAX
eServices system as both a logged-in user and as a guest user, 2. Electronic Funds Transfer (EFT), or 3. check
or 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 (OUPC)
Each payment made by check or money order must be submitted with the appropriate Ohio Universal Payment Coupon (OUPC). Application of payments is driven by the OUPC used and is based on which form is
filed (i.e., IT 1041, IT 4708, IT 4738, or IT 1140). Separate OUPCs allow the Taxpayer to make either an estimated payment or a return payment. Only one type of payment can be made on each OUPC submitted.
All OUPCs can be found at tax.ohio.gov/forms by entering “OUPC” in the Form Title or Number field.
The IT 1041 OUPC is used by trusts and estates to make either an estimated payment or a payment submitted
with the trust/estate return. When completing either the “Estimated Payment” or “Return Payment” OUPC:
●	Enter the year that coincides with the tax year start date in the format yyyy
●	Specify the appropriate payment type:
•	 Return Payment or Estimated Payment, Fiduciary Trust Tax IT 1041
•	 Return Payment or Estimated Payment, Fiduciary Estate Tax IT 1041
●	Enter the amount of payment as a whole number without a decimal, as the OUPC features a preprinted “.00”;
●	A FEIN should be entered for trusts and estates. Estates should not use the decedent’s SSN when filing
the Ohio IT 1041. Contact the IRS to obtain a FEIN for the estate before filing the IT 1041.
Sample IT 1041 OUPC: This form must be included with each check or money order.

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

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IT 1041
Rev. 12/25

2025 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(C), 5747.01(S),
and 5747.01(AA).
How Does the Residency of the Trust Affect 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
II – Allocated Qualifying Trust Amounts and III 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 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.
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 I
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.
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IT 1041
Rev. 12/25

●	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
●	Enter zero on lines 3 and 12, AND
●	Include a copy of the acknowledgment from the
Department that the trust is exempt from Ohio
income tax

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 the trust’s federal taxable income, subject to
the adjustments on Schedule I 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
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:

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 April
15 after the year in which the trust or estate’s taxable
year ends. 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 12/31/2025 calendar year
end, the entity can extend the due date for filing the
IT 1041 to September 30, 2026, 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.
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 OUPC available at tax.ohio.
gov/forms. Interest will accrue on any tax not paid by
the due date, and penalties may also apply. 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.
See R.C. 5747.08(G) and Ohio Admin Code 5703-07-05.
Estimated Tax Payments
The trust or estate must make estimated tax payments
with the IT 1041 Ohio Universal Payment Coupon
(OUPC) 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
the due dates chart below.
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.

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IT 1041
Rev. 12/25

Due Date for Estimated Payments

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 “Check here if amended
return” box at the top of page 1.

% 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.

Please include a copy of the following with the
amended return:

On or before the 15th day after the
90% of the current year tax liability
close of the taxable year

●	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.

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

Some common mistakes may not require an amended
return. Some examples include:

When Not to Amend the Return

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

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
See R.C. 5747.08(J).
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.
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 at tax.ohio.gov/forms.
Amended Returns

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:
●	Federal return, including applicable schedules and
attachments
●	Copies of income statements (W-2, 1099, etc.)
●	IT K-1, or credit certificates
●	Form IT NRCE or form IT RCTE
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
OUPC payment coupon.

When to Amend

Changes to the Federal Return

The trust or estate can file an amended IT 1041 to report
changes to the originally filed return. An amended

If the IRS makes changes to the federal return, either
based on an audit or an amended return, and those
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IT 1041
Rev. 12/25

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:
●	Federal amended 1041
●	IRS acceptance letter, OR
●	Refund check issued to the trust or estate by the
IRS, if applicable

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:
●	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: 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:
●	Period for the federal appeal has expired
●	Date on the refund issued by the IRS, OR
●	Date a federal settlement agreement is signed
See R.C. 5747.10.
Completing the Applicable
Check Boxes on Page 1 of the Ohio IT 1041

Note: The list above is not all-inclusive. For additional
information, see R.C. 5747.01(I)(3)(a),(e) and (f).

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.

Estate Residency

Estates must select one or both of the following:

A bankruptcy estate must file the Ohio IT 1041 if its
Ohio taxable income is greater than $0. “Ohio taxable
income” is federal taxable income, as adjusted on
Schedule I of the IT 1041. The IT 1041 is due by April
15 of the calendar year following the year in which the
bankruptcy estate’s tax year ends.
Bankruptcy estates that file a federal 1041 but calculate
the estate’s taxable income on a federal 1040 or 1040SR must enter their federal taxable income from the
1040 or 1040-SR attachment on line 1 of their IT 1041.
The bankruptcy estate will then complete the IT 1041
and compute its tax liability as an estate; it is not
entitled to any exemptions, credits, deductions, or
tax rates that are only available on Ohio’s individual
income tax return (form IT 1040).

●	Decedent’s estate
●	Bankruptcy estate
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

An estate is a resident if the decedent was domiciled
in Ohio at the time of death. See R.C.5747.01(I)(2).
Bankruptcy Estates

Mail the completed IT 1041 with a copy of the supporting
federal Form 1040/Form 1040-SR attachment to the
following address:
Ohio Department of Taxation
Pass-Through Entity & Fiduciary Income Tax Division
P.O. Box 2619
Columbus, Ohio 43216-2619

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Rev. 12/25

Line 9 - Nonrefundable Business Credits
Estates and trusts should enter the sum of
nonrefundable credits from line 33 of the PassThrough Entity & Fiduciary Income Tax Schedule of
Credits. The PTE & Fiduciary Schedule of Credits is
available at tax.ohio.gov/forms.

Please send § 505(b) requests to the following
address:
Ohio Department of Taxation
Bankruptcy Division
P.O. Box 530
Columbus, Ohio 43216

Note: The trust/estate is only entitled to the portion
of the credits that relate to the retained earnings in
the trust/estate.

Taxable Income, Tax, Payments and
Net Amount Due Calculations
Line 1 – Federal Taxable Income
Enter the estate or trust’s federal taxable income from
page 1 of the federal 1041. For a bankruptcy estate that
files a federal 1041 but calculates the estate’s taxable
income on a federal 1040 or 1040-SR attachment, enter
the federal taxable income from page 1 of the 1040 or
1040-SR. See R.C. 5747.01(S).
Line 2 - Net Schedule I Adjustments
Enter the total of net adjustments (net additions/deductions) from Line 46.
Line 4 – Trusts - Qualifying Trust Amount
This line must match the summary line 49. 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
This line must match the summary line 52. Any
difference on these lines will result in a delay in
processing the return and a possible refund reduction
or billing.
Line 6 – Trusts - Modified Nonbusiness Income
This line must match the summary line 55. Any
difference on these lines will result in a delay in
processing the return and a possible refund reduction
or billing.
Line 8 – Tax Liability on Line 3 (Estates) or Line 7
(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 2025 Estates and Trusts Income Tax Brackets
and Marginal Tax Rates
TY 2025 Ohio Taxable
Income Brackets

$0

-	 $26,050	

$26,051	 - $100,000	
			
More than $100,000 	
			

TY 2025 Ohio Tax

1.31287% of Ohio Taxable Income
$342.00 plus 2.75% of the amount in 		
excess of $26,050
$2,394.32 plus 3.125% of the amount in
excess of $100,000

See R.C. 5747.02(A).

See R.C. 5747.02(B)(3).
Line 11 – 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. The form is available at tax.
ohio.gov/forms.
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 2025 Ohio tax liability, OR
●	100% of the 2024 Ohio tax liability
Note: A trust or estate may be subject to the penalty
even if it is due a refund when filing its return.
See R.C. 5747.09(D) and (E).
Line 13 -Ohio IT 1041 Estimated Payments, Prior
Year Overpayments, and Amounts Previously Paid
Enter sum of all estimated (OUPC/electronic) payments, prior year overpayment claimed on this return,
and amounts previously paid with an original and/or
amended return.
Line 14 - Ohio Income Tax Withheld
Enter sum of all Ohio income tax withheld for the
fiduciary and include supporting income statements
(1099s, W-2s).
Line 15 – Refundable Business Credits
Estates and trusts should enter the sum of refundable
credits from line 40 of the Pass-Through Entity &
Fiduciary Income Tax Schedule of Credits. Find the PTE
& Fiduciary Schedule of Credits at tax.ohio.gov/forms.
Line 16 - Overpayment Previously Requested
On amended returns only, enter any overpayments
previously requested on original and/or amended
return(s). Enter as a positive number.

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IT 1041
Rev. 12/25

Line 19 - Amount of Line 18 to be Credited Toward
Next Year’s Liability
A credit carryforward is only allowed on a timely filed,
original return; otherwise, any overpayment will be
refunded.
Line 20 – Amount of Line 18 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 2026, the interest rate is 7%.
See R.C. 5747.11(B) and (C)(1).
Line 22 – Interest Due on Late Payment of Tax
Interest is due on any unpaid tax exceeding one dollar
from the unextended due date until the date the tax is
paid. An extension of time to file does not extend the
payment due date. The interest rate for calendar year
2026 is 7%.
See R.C. 5747.08(G).
Line 23 – Total Amount Due
Make payments by:
●	Electronic check payment via OH|TAX eServices as
a logged-in user or as a guest user
●	Electronic check through an approved software
program when filing electronically
●	Personal check/money order with the Ohio OUPC
●	Electronic funds transfer (EFT) through the Ohio
Treasurer of State
For questions regarding the EFT payment program, see
the Electronic Funds Transfer information available
at the Ohio Treasurer of State (TOS) website at tos.
ohio.gov.
If $1.00 or less is owed, no payment is necessary.

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 25 – Pass-Through Entity Taxes Paid/Electing
Pass-Through Entity Taxes Paid
Enter the proportionate share of tax paid by a passthrough entity on the IT 1140 or an electing passthrough 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 - Taxes Paid to Another State or District of
Columbia
Enter taxes paid to another state or the District of Columbia if both of the following are true:
●	The tax was enacted for purposes of complying with
IRS notice 2020-75, AND
●	The tax was deducted in computing the federal or
Ohio taxable income.
See R.C. 5747.01(S)(16).
Line 27 – Electing Small Business Trust (ESBT) Income
Add the distributive share of income from an S
corporation. This amount is apportionable business
income and must be included on Schedule III. Do not
include on Schedule IV.
Note: Such income is not included in the trust’s federal
taxable income.
See R.C. 5747.01(S)(13).

Schedule I – Adjustments to Federal
Taxable Income

Line 28 – Losses from the Sale or Disposition of Ohio
Public Obligations

Additions

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.

The following apply to both trusts and estates except
where noted.
Line 24 – Federal and/or Non-Ohio State or Local
Government Interest and Dividends Not Distributed

See R.C. 5747.01(S)(7) and 5709.76.

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

Enter reimbursements received in 2025 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.

Line 29 – Reimbursement of Expenses

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IT 1041
Rev. 12/25

See R.C. 5747.01(S)(9)(b).
Lines 30a-30c - IRC §168(k) Bonus Depreciation and
§179 Expense Add-back
Add 5/6 of your bonus depreciation allowed under
Internal Revenue Code section 168(k). Also add 5/6
of your depreciation expense allowed under Internal
Revenue Code section 179 less the amount that would
have been allowed under section 179 as it existed on
Dec. 31, 2002.
Replace “5/6” with “2/3” for employers who increased
their Ohio income taxes withheld by an amount equal
to or greater than 10% over the previous year.
Replace “5/6” with “6/6” for taxpayers who incur a net
operating loss for federal income tax purposes if the
loss was a result of the 168(k) and/or 179 depreciation
expenses.
No add-back is required for:
●	Employers who increased their Ohio income taxes
withheld over the previous year by at least their total
168(k) and 179 depreciation expenses, OR
●	168(k) or 179 depreciation from a pass-through entity in which the taxpayer owns less than 5%

issued by the United States government or its
possessions/territories that are exempt from Ohio tax
by federal law.
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 36 – 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 37 – 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.

!

This add-back is deductible on the Ohio IT 1041 in
subsequent tax years.
Line 31 – 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).
Line 32 - Federal Conformity Additions
Estates and trusts enter any applicable adjustments
on this line.
For updates on Ohio conformity, see Ohio Conformity
Updates at tax.ohio.gov.
See R.C. 5701.11.
Line 33 – 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 35 – Federal Interest and Dividends Exempt
from State Taxation
Enter interest and dividend income, to the extent
included in federal taxable income, from obligations

CAUTION

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

Line 38 – 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 39 – 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 40 – 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 included in
line 34 (“Total additions”). See R.C. 5747.01(S)(9)(a).

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IT 1041
Rev. 12/25

Line 41 - Federal Conformity Deductions
Estates and trusts report applicable federal conformity
adjustments on this line.
Note: Do not enter any federal adjustments solely
because the deduction is available to an individual on
the federal 1040 or the Ohio IT 1040.
For updates on Ohio Conformity, see Ohio Conformity
Updates at tax.ohio.gov.

●	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).

See R.C. 5701.11.

Schedule II – Allocated Qualifying Trust Amounts

Line 42 – Farm Income (Trusts Only)	

Line 47 - Certain Capital Gains/ Losses in Ohio
taxable income

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 43 - Deduction for Prior Year IRC §168(k) Bonus
Depreciation and §179 Expense Add-backs
The add-back requirement is restored for taxable years
beginning on or after January 1, 2025. For taxable years
ending on or after October 3, 2023 and before January
1, 2025, the depreciation add-back was not required on
the Ohio IT 1041. However, deductions for add-backs
previously made are still permitted. 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
PTE would have to amend the prior years’ returns to
claim the deduction.

!
CAUTION

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

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 44 – 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:

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
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 48 - Ratio of Qualifying Investee’s Physical
Assets in Ohio to Total Physical Assets
The percentage is calculated as follows:
Net book value of the qualifying investees physical
assets in Ohio
Net book value of the qualifying investees physical
assets everywhere
“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.
Note: If the qualifying investee is a member of
a qualifying controlled group, as defined in R.C.

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IT 1041
Rev. 12/25

5733.04(M), then special rules apply for purposes of
calculating the Ohio ratio.

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

See R.C. 5747.01(AA)(5)
Schedule III – Apportioned Income for Trusts
Line 50 - Portion of Ohio Taxable Income Less
Amounts on Line 47, Business Income or Qualifying
Investment Income

Note: If distributive share is business income/loss from
a pass-through entity, use Schedule III.

Enter the trust’s portion of Ohio taxable income (line
3) not included on line 47 to the extent such income
is either of the following:

Schedule V - Apportionment Factors

●	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 any. Electing Small Business Trust
(ESBT) income is apportionable to Ohio as modified
business income and is reported in Schedule III.
See R.C. 5747.01(AA)(1) and 5747.01(S)(13).
●	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.
See R.C. 5747.01(AA)(1) and 5747.013
Schedule IV – Allocated Nonbusiness
Income for Trusts
Line 53 - Resident Trusts: Portion of Ohio Taxable
Income
Resident trusts enter the trust’s Ohio taxable income
(IT 1041, line 3) not reported on lines 47 or 50.
Line 54 - Nonresident Trusts: Trust’s Portion of Ohio
Taxable Income

See R.C. 5747.01(AA)(3).
The three factors comprising the total weighted
apportionment ratio are 20% property, 20% payroll,
and 60% sales.
NOTE: If the “total everywhere” amount of any factor
is zero, the weights of the remaining factors must be
proportionately increased to result in a total weighted
ratio of 100%.
Example: If the entity has no payroll, it must reweight
its property factor to 25% and its sales factor to 75%.
If a trust owns an interest in a PTE, when calculating its
apportionment ratio it must include its proportionate
share of the other PTE’s “Within Ohio” portion and the
“Total Everywhere” portion of property, payroll and
sales. These amounts are reported by the PTE in the
“Entity Apportionment Percentage” section of the IT
K-1 issued to the trust.
NOTE: A trust or estate may request, in writing with a
timely filed original or amended return, an alternative
form of apportionment instead of the method listed
above. Such request is only valid if approved by the
Department.
See R.C 5747.01(AA)(4), 5747.013(B) and 5747.231.
Property Factor
The Property Factor is the ratio of:
Average value of property in Ohio
Average value of property everywhere
“Property” includes any real and tangible personal
property that is owned, rented, subrented, leased and/
or subleased in the course of a trade or business by the
trust or other PTEs owned by the trust.
Property does not include the following:

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 47 or 50:

●	Construction in progress
●	Property not used in a trade or business
●	Property for which Ohio has issued an air, noise, or
industrial water pollution control certificate, AND
●	Property used exclusively during the tax year for
qualified research

●	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

Note: The original cost of qualifying improvements
to property in an enterprise zone, for which Ohio has
issued a Tax Incentive Qualification Certificate, should
only be included in Total Everywhere.

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The “average value” of business property is calculated
by averaging the total value of all applicable property
owned or rented at the beginning and end of the tax
year.
See R.C. 5747.013(B)(1)(b).
Line 56a – Property Owned
Within Ohio: Enter the average value of all Ohio
property owned by the business during the tax year.
Total Everywhere: Enter the average value of all
property owned by the business during the tax year.
Property owned by the business is valued at its original
cost.
Line 56b – Property Rented

●	Employee performs services in Ohio and either the
headquarters, or, if no headquarters exists, the place
from which the service is directed or controlled, is
in Ohio, AND/OR
●	Employee is a resident of and performs some
services in Ohio, and the headquarters or the place
from which the service is directed or controlled is
not in any state in which some part of the service is
performed
Compensation paid to any employee of a common
or contract motor carrier who performs regularly
assigned duties in more than one state should be
assigned to Ohio by the ratio of mileage traveled by
the employee in Ohio to the total mileage traveled by
the employee everywhere during the taxable year.
Mileage Traveled by Employee in Ohio
Total Mileage Traveled by Employee Everywhere

Within Ohio: Enter the average value of all Ohio business
property rented by the trust during the tax year.
Total Everywhere: Enter the average value of all
business property rented by the trust during the tax
year.

Total Everywhere: Enter the total compensation paid
everywhere during the tax year.

Note: Business property rented by the trust is valued
at eight times the net annual rental rate (annual rental
expense less sub-rental receipts).

Sales Factor
The sales factor is a ratio of:	

Payroll Factor
The payroll factor is the ratio of:

		
		

See R.C. 5747.013(B)(2).

Sales in Ohio
Sales everywhere

“Sales” includes gross business receipts such as:

Total compensation in Ohio
Total compensation everywhere
“Compensation” means any form of remuneration paid
to an employee for personal services. Compensation
does not include any of the following:
●	Amounts paid to employees for services unrelated
to a trade or business
●	Amounts reclassified as a distributive share of
income from a pass-through entity under R.C.
5733.40(A)(7), AND
●	Amounts paid to employees who are primarily
engaged in qualified research
Note: Compensation paid to certain employees at an
urban job and enterprise zone facility, for which Ohio
has issued a Tax Incentive Qualification Certificate,
should be included only in total compensation
everywhere.

●	Receipts from the sale of real property, tangible
personal property, or services
●	Receipts from rents and royalties from real and
tangible personal property, OR
●	Receipts from the transfer of or the right to use
intellectual property such as trademarks, trade
names, patents, and copyrights
“Sales” does not include any of the following:
●	Receipts from the transfer of real or tangible
personal property that is either a capital asset or
an Internal Revenue Code section 1231 asset, AND
●	Receipts from sales to certain public utilities,
insurance companies, and financial institutions
described in R.C. 5747.013(B)(3)

See R.C. 5747.013(B)(2).

Note: Income amounts excluded from the sales factor
may still be considered business income under Ohio
law. See R.C. 5747.013.

Line 57– Payroll

Line 58 – Sales

Within Ohio: Enter the total compensation paid in
Ohio during the tax year. Compensation is paid in Ohio
if any of the following apply:

Within Ohio: Enter gross receipts from sales within
Ohio during the tax year. Sales within Ohio include
all of the following:

●	Employee’s job is entirely in Ohio
●	Employee’s job is primarily in Ohio with only
incidental work outside Ohio

●	Receipts from sales of tangible personal property,
less returns and allowances, to the extent the
property was received by the purchaser in Ohio, AND

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●	Receipts from sales, other than tangible personal
property if:
●	The income-producing activity is performed
entirely within Ohio, OR
●	The income-producing activity is performed
both withi