Who must file the IL-1041?

Who must file the IL-1041?

You must file Form IL-1041, Illinois Fiduciary Income and Replacement Tax Return, if you are a fiduciary of a trust or an estate and the trust or the estate

• has net income or loss as defined under the Illinois Income Tax Act (IITA), regardless of any deduction for distributions to beneficiaries; or
• is a resident of Illinois; and 
• is required to file (or files) a federal income tax return (regardless of net income or loss).
  Note: "Grantor" trusts are not required to file Form IL-1041.

If the trust is a charitable organization exempt from federal income tax by reason of the IRC, Section 501(a), it is not required to file Form IL-1041. However, unrelated business taxable income, as determined under IRC, Section 512, is subject to tax (without any deduction for the Illinois income tax) and must be reported on Form IL-990-T, Illinois Exempt Organization Income and Replacement Tax Return, instead of Form IL-1041. For more information see Form IL-990-T Instructions.

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