IT RCTE: 2024 Trust/Estate Resident Credit (2024)
Ohio · Ohio Department of Taxation · Used for tax years 2024
Ohio Form IT RCTE is used to calculate the trust/estate resident credit. It lists applicable income taxed by other states or the District of Columbia and the income taxes paid to those jurisdictions. Include it with Ohio Form IT 1041.
Who files this form
Trusts and estates must use IT RCTE to calculate their Ohio resident credit for income subject to trust or estate income tax in another state or the District of Columbia. Include the form when filing Ohio IT 1041.
- For trusts, eligible income is modified nonbusiness income earned or received by a resident portion of the trust and subject to tax in another state or DC.
- For estates, eligible income is the portion of Ohio taxable income taxed in another state or DC.
Nonresident trusts and estates are not entitled to this credit and should not use this form.
What you'll need
Have the following information available to complete IT RCTE for tax year 2024:
- The trust’s or estate’s name and FEIN.
- Income tax returns filed with other states or the District of Columbia, showing the eligible income taxed there.
- Income taxes paid to each of those states or DC for the current tax year.
- Ohio Schedule II amounts deducted from income, so those amounts are excluded from Column A.
Include a copy of the completed IT RCTE with Ohio IT 1041 and keep a copy for the trust’s or estate’s records.
How to file
Include IT RCTE with Ohio IT 1041 and retain a copy for your records. The supplied text does not give a mailing address or e-file directions.
To complete the form:
- Enter the trust’s or estate’s name, FEIN, and tax year 2024.
- Next to each applicable state abbreviation or “DC,” enter eligible income taxed in Column A and income tax paid for the current tax year in Column B.
- For trusts, total Column A on line 1a and enter that amount on the corresponding line of Schedule IX.
- For estates, total Column A on line 1b and enter that amount on the corresponding line of Schedule IV.
- Total Column B on line 2 and enter that amount on the corresponding line of the applicable schedule.
Common mistakes
- Entering only income or only tax. Do not enter income in Column A without tax paid in Column B, or tax paid in Column B without income in Column A.
- Using the form for a nonresident trust or estate. Nonresidents are not entitled to this credit. Estates should see IT NRCE, available at tax.ohio.gov/forms.
- Including income from states without a trust or estate income tax. Those states are not listed, and income earned or received there should not be included.
- Including taxes paid to a country, province, or city. These taxes do not qualify.
- Including amounts deducted on Ohio Schedule II. Those amounts, such as certain municipal and state income tax refunds, are not eligible for Column A.
- Forgetting to include IT RCTE with IT 1041 or keep a copy. The form directs you to do both.
Questions people ask
Can a nonresident trust or estate claim this credit?
No. Nonresident trusts and estates are not entitled to this credit and should not use IT RCTE. Estates should see IT NRCE at tax.ohio.gov/forms.
Does income taxed by the District of Columbia qualify?
Yes. List applicable income taxed and taxes paid next to “DC” on the form.
Can I include taxes paid to a foreign country or a city?
No. For this credit, “state” means only one of the 50 United States. Do not include taxes paid to a country, province, or city.
Where do I report the income totals?
Trusts report the Column A total on line 1a and the corresponding line of Schedule IX. Estates report the Column A total on line 1b and the corresponding line of Schedule IV.
Do I need to submit IT RCTE and keep a copy?
Yes. Include the form with Ohio IT 1041 and retain a copy for the trust’s or estate’s records.