Schedule FC (Form 41 Only): Fiduciary Credits (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule FC is the 2024 Fiduciary Credits schedule attached to Form 41. It reports and calculates credits for income taxes paid to other states, taxes paid to a foreign country, and specified Alabama tax credits, including amounts received through Schedule K-1 and allocat
Who files this form
Schedule FC is for reporting fiduciary credits on Alabama Form 41. The 2024 schedule is labeled for Form 41 only and must be attached to that return.
What you'll need
Have Form 41 available for the name, federal employer identification number (FEIN), and tax due on line 7.
Depending on the credits you report, you may also need:
- Other states’ 2024 tax returns showing taxable income and tax due, or a foreign country’s tax return showing tax due.
- Schedules K-1 showing your share of credits and the FEIN of each entity. Where directed, attach a schedule if a credit comes from more than one entity.
- Purchase, installation, conversion, or reservoir construction cost information for the Qualified Irrigation System/Reservoir System Tax Credit.
- Approved tax credit certificate information for the 2013 Alabama Historic Rehabilitation Tax Credit.
- The approved Department of Postsecondary Education certificate for the Career-Technical Dual Enrollment Credit. Attach it to the return.
- The approved Department of Commerce certification for the Port Credit. Attach it to the return.
- A copy of the Tax Credit Certificate or Transfer Tax Credit Certificate for the 2017 Alabama Historic Rehabilitation Tax Credit.
- A copy of the tax credit certificate for the Railroad Modernization Act of 2019 Credit.
- Forms KRCC and KRCC-B for the Income Tax Capital Credit. Attach them to your Alabama return.
- Prior-year credit carryforward information, including when the credit was generated, its amount, and amounts used in earlier years.
How to file
Attach Schedule FC to Form 41.
The form’s asterisk note says fiduciary credits must be submitted through My Alabama Taxes (MAT) before you complete Schedule FC. It refers to instructions for submission details, but those instructions were not provided.
The supplied form does not print a mailing address or explain how to e-file the return.
Common mistakes
- Missing required certificates: Parts O and P warn that no credit will be given if the required certificate information is not attached.
- Using foreign currency in Part H: All dollar figures in the foreign-country tax credit section must be in U.S. dollars.
- Reporting foreign tax credits on nonresident K-1s: Part H says the credit applicable to nonresident beneficiaries should not be reported on Nonresident K-1s.
- Treating a transferred railroad credit as refundable: Part P states that a refundable credit is not allowed for a received Transfer Credit Certificate.
- Skipping capital credit attachments or checkboxes: Part R requires Forms KRCC and KRCC-B and tells you to check the applicable KRCC received or KRCC issued box.
- Completing a carryforward calculation when told to skip it: Do not complete Part I, line 9 if Part I, line 8 is zero; Part M, line 10 if Part M, line 9 is zero; or Part Q, line 10 if Part Q, line 9 is zero.
Questions people ask
How is the credit for income tax paid to another state calculated?
For each state listed in Part A, compare the tax due using Alabama tax rates with the tax due shown on that state’s return. Enter the smaller amount. Add those amounts on line 25 and carry the total to Section C, Part A, Column 3.
Where do I report credits allocated to beneficiaries?
Section D totals the beneficiary credit amounts from the lines listed there. Enter the total on Form 41, Schedule K, line 16 or Schedule G, line 24.
Where does the total nonrefundable credit go on Form 41?
Section F adds current-year credits used from Section C, Column 5 and prior-year credits used from Section E, Column 7. Enter the total from Section F, line 3 on Form 41, line 8a.
Which refundable credits are listed in Section G?
Section G lists the 2017 Alabama Historic Rehabilitation Tax Credit, carried to Form 41, line 8h, and the Railroad Modernization Act of 2019 credit, carried to Form 41, line 8i. For the railroad credit, Section G directs you to enter the amount only if Section B, Part P, line 1a is checked.