Law & Legal & Attorney Wills & trusts

2013 Income Tax Brackets for Estates and Trusts

Estates and trusts that generate income during the course of any given year are required to file IRS Form 1041, U.S. Income Tax Return for Estates and Trusts.  And, like personal income tax brackets, each year the estate and trust income tax brackets are adjusted for inflation.

Which Estates and Trusts Must File Form 1041 in 2013?

In 2013, the following estates are required to file IRS Form 1041:
  1. The estate's gross income for the tax year is $600 or more, or

  1. A beneficiary of the estate is a nonresident alien.

In 2013, the following trusts are required to file IRS Form 1041:
  1. The trust has any taxable income for the tax,
  2. The trust has gross income of $600 or more (regardless of taxable income), or
  3. A beneficiary of the trust is a nonresident alien.

2013 Estate and Trust Income Tax Brackets

In Rev. Proc. 2013-15, the IRS set forth the inflation-adjusted income tax brackets for 2013. Below are the income tax brackets that apply to estates and trusts in 2013, which includes the new top 39.6% income tax bracket introduced by the American Taxpayer Relief Act.

If taxable income is:      The tax is:

Not over $2,450          15% of the taxable income

Over $2,450 but          $367.50 plus 25% of
not over $5,700           the excess over $2,450

Over $5,700 but          $1,180 plus 28% of
not over $8,750           the excess over $5,700

Over $8,750 but          $2,034 plus 33% of
not over $11,950         the excess over $8,750

Over $11,950              $3,090 plus 39.6% of
                                    the excess over $11,950

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