541: California Fiduciary Income Tax Return (2025)
California · FTB · Used for tax years 2025
Form 541 is the 2025 California Fiduciary Income Tax Return for estates and trusts. It reports income, deductions, credits, taxes, and payments to determine the amount due or refund.
What you'll need
Have the estate or trust’s name, FEIN, fiduciaries’ names and titles, and address ready. The form also asks for the trust’s creation date or the decedent’s date of death, and the names of the trust’s grantors.
Depending on the income, deductions, and other items reported, the form calls for these attachments:
- Federal Schedule C (Form 1040) for business income or loss.
- Schedule D (541) for capital gain or loss.
- Federal Schedule E (Form 1040) for rents, royalties, partnerships, and income from other estates and trusts.
- Federal Schedule F (Form 1040) for farm income or loss.
- Schedule D-1 for ordinary gain or loss.
- A schedule for other deductions not subject to the 2% floor on line 15a.
- Schedule K-1 (541) for the income distribution deduction on line 18.
- A worksheet for credits on line 23.
- Schedule P (541) for alternative minimum tax.
If the estate or trust received tax-exempt income, attach a computation showing the allocation of expenses. If the return includes a Reportable Transaction or Listed Transaction, complete and attach federal Form 8886.
Common mistakes
- Do not complete Schedule A for a simple trust or a pooled income fund.
- Do not skip Schedule G if the trust has nonresident trustees or nonresident beneficiaries. Complete lines 1a through 1f before Part II.
- If total distributions on Schedule B, line 11, exceed accounting income on line 8, check the federal Form 1041, Schedule B, line 11 instructions to see whether Schedule J (541) is required.
Questions people ask
Can I apply an overpayment to next year’s estimated tax?
Yes. On the 2025 return, line 40 lets you enter the amount of overpaid tax from line 39 to credit to 2026 estimated tax.
What if the trust has nonresident trustees or beneficiaries?
Complete Schedule G on Side 3. It covers California-source income and the allocation of income and deductions to California.
Where do I calculate the income distribution deduction?
Use Schedule B on Side 3. Enter the smaller of lines 13 and 14 on line 15, then carry that amount to Side 1, line 18. Line 18 also calls for Schedule K-1 (541) to be attached.
Who signs the return?
The signature area is for the trustee or officer representing the fiduciary. The form also has a separate signature area for a paid preparer.
Can I make voluntary contributions on this return?
Yes. Side 4 lists voluntary contribution funds. Add the contributions on line 61 and enter the total on Side 2, line 42.