Schedule CT-1041B: Fiduciary Adjustment Allocation (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Schedule CT-1041B allocates the Connecticut fiduciary adjustment between a trust or estate and its beneficiaries. It also calculates the resident, noncontingent beneficiary percentage for full-year or part-year resident inter vivos trusts with one or more nonresident, noncontinge
Who files this form
Complete Part 1 of Schedule CT-1041B if the trust or estate has a Connecticut fiduciary adjustment. This part calculates the trust or estate’s share and each beneficiary’s share of that adjustment.
Report all resident and nonresident beneficiaries to whom income is distributable, even if the income is not taxable to a nonresident beneficiary. Complete Part 1 even if there is no distribution to beneficiaries.
Complete Part 2 only for a full-year or part-year resident inter vivos trust with one or more nonresident, noncontingent beneficiaries.
What you'll need
Have these forms and details ready:
- The trust or estate’s name and federal employer identification number (FEIN).
- Each beneficiary’s name, address, SSN or FEIN, and Connecticut residency status. If the mailing and home addresses differ, provide both.
- Each beneficiary’s and the trust or estate’s share of federal distributable net income.
- The Connecticut fiduciary adjustment from Form CT-1041, Part 1, Schedule A, Line 13.
- For Part 2, the numbers of resident and nonresident noncontingent beneficiaries.
If there are more than four beneficiaries, attach a schedule identical to Part 1 for the additional beneficiaries. If there is no federal distributable net income and the adjustment is apportioned under the special rule in the instructions, attach a schedule showing that apportionment.
Read the Form CT-1041 Instructions before completing this schedule.
How to file
Attach Schedule CT-1041B to the back of Form CT-1041, Connecticut Income Tax Return for Trusts and Estates. Do not use staples. Complete the schedule in blue or black ink only.
Transfer the trust or estate’s adjustment from Part 1, Line e, Column 5 to:
- Schedule CT-1041C, Line 5, for a resident estate or full-year resident trust.
- Schedule CT-1041FA, Part 1, Line 2, for a nonresident estate or trust, or a part-year resident trust.
The fiduciary must also provide each beneficiary with Schedule CT-1041 K-1 for inclusion on the applicable income tax return.
Common mistakes
- Using the wrong year’s form. For tax year 2024, use the 2024 schedule. The form warns that using the wrong year’s form can delay processing.
- Leaving out beneficiaries. Include both resident and nonresident beneficiaries to whom income is distributable, and check the box for each nonresident beneficiary.
- Skipping Part 1 because no distribution was made. The instructions say to complete this section even if there is no distribution to beneficiaries.
- Entering totals that do not match. Part 1, Line f, Column 5 must match Form CT-1041, Part 1, Schedule A, Line 13.
- Rounding Part 2 incorrectly. Enter the Line 4 result as a decimal rounded to four decimal places.
Questions people ask
How is the Connecticut fiduciary adjustment divided?
Generally, the adjustment is divided in proportion to each beneficiary’s and the trust or estate’s share of federal distributable net income. Enter the percentage shares in Column 4, then multiply the total adjustment by each percentage to calculate Column 5.
What if there are more than four beneficiaries?
Attach a schedule identical to Part 1 listing the additional beneficiaries.
How do I calculate the resident, noncontingent beneficiary percentage?
In Part 2, divide the number of resident, noncontingent beneficiaries by the total number of resident and nonresident noncontingent beneficiaries. Enter the result on Line 4 as a decimal rounded to four places.
Where does the Part 2 result go?
For a full-year resident inter vivos trust, enter it on Schedule CT-1041C, Line 11. For a part-year resident inter vivos trust, enter it on Schedule CT-1041FA, Part 1, Line 5.
What must beneficiaries receive?
The fiduciary must give each beneficiary Schedule CT-1041 K-1 showing the fiduciary adjustment to include in Schedule 1 of Form CT-1040 or Form CT-1040NR/PY.