Schedule FC (Form 41 Only): Fiduciary Credits (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedule FC is attached to Form 41 to report fiduciary tax credits for 2025. It calculates credits for income taxes paid to other states and other listed credits, including amounts received through Schedule K-1 and amounts allocated to beneficiaries.
Who files this form
Schedule FC is for Alabama Form 41 filers reporting fiduciary credits. It covers current-year credits, credits allocated to beneficiaries, and prior-year credit carryforwards.
The schedule is for Form 41 only and must be attached to that form.
What you'll need
Have your Form 41 available for the name, federal employer identification number (FEIN), and tax due on line 7.
Depending on the credits you report, you will also need:
- Other-state or foreign tax returns: Part A uses 2025 taxable income and tax due from other states' returns. Part H uses tax due from the foreign country's return.
- Schedules K-1 and entity FEINs: These provide your share of credits. Where the form directs, attach a schedule if a credit comes from more than one entity.
- Credit and project information: This may include project numbers, dates placed in service, approved credit amounts, irrigation or reservoir costs, and amounts allocated to beneficiaries.
- Credit certificates: The form uses certificates for historic rehabilitation, railroad modernization, workforce housing, employer, childcare facility, and employer provider credits.
- Prior-year carryforward information: Section E asks when the credit was generated, the credit amount, and amounts used in earlier years.
The form specifically requires these attachments for the related credits:
- Career-Technical Dual Enrollment Credit: the approved certificate from the Department of Postsecondary Education.
- Port Credit: the approved certification from the Department of Commerce.
- 2017 Alabama Historic Rehabilitation Tax Credit: a copy of the Tax Credit Certificate or Transfer Tax Credit Certificate.
- Railroad Modernization Act of 2019 Credit: a copy of the Tax Credit Certificate.
- Income Tax Capital Credit: Forms KRCC and KRCC-B.
How to file
Attach Schedule FC to Alabama Form 41.
For credits marked with an asterisk, the form says fiduciary credits must be submitted through My Alabama Taxes (MAT) before Schedule FC is completed. It refers to the instructions for submission details, but no instructions were provided here.
The supplied form does not give a mailing address or instructions for e-filing Form 41.
Common mistakes
- Completing Schedule FC before submitting credits through MAT: The asterisked reminder requires submission through My Alabama Taxes first.
- Leaving out required certificates: For the 2017 Alabama Historic Rehabilitation Tax Credit and Railroad Modernization Act of 2019 Credit, the form warns that no credit will be given without the required certificate attachment.
- Using foreign currency in Part H: All dollar figures must be in U.S. dollars.
- Reporting foreign-country credits on nonresident K-1s: Part H says the amount applicable to nonresident beneficiaries should not be reported on Nonresident K-1s.
- Treating a transferred railroad credit as refundable: Part O states that a refundable credit is not allowed when the Transfer Credit Certificate box is checked.
- Omitting capital credit attachments or checkboxes: Part U requires Forms KRCC and KRCC-B and the applicable KRCC received or KRCC issued box.
Questions people ask
How does Part A calculate the credit for income tax paid to another state?
For each state, compare the tax due using Alabama tax rates with the tax due shown on that state's return. Enter the smaller amount. Add the amounts on lines 4, 8, 12, 16, 20, and 24, then enter the total on line 25 and in Section C, Part A, Column 3.
Where do I report credits allocated to beneficiaries?
Section D totals the beneficiary allocations from the listed parts of Section B. Enter that 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 to prior-year credits used from Section E, Column 7. Enter the total from Section F, line 3 on Form 41, line 8a.
Can unused Alabama Workforce Housing Tax Credit be carried forward?
Yes. Part Q states that unused Alabama Workforce Housing Tax Credit may be carried forward for a maximum of five years.