Instructions for Form

2025

Instructions for Form

1041-QFT

U.S. Income Tax Return for Qualified Funeral Trusts

General Instructions

Section references are to the Internal Revenue Code.

Future Developments

For the latest information about developments related to

Form 1041-QFT and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form1041QFT.

Tax rate schedule for trusts and estates. The tax rates

have changed for 2025. See Line 12—Tax, later.

Change in Form 1041-QFT accounting period designation. This form now requires the filer to fill in the calendar

year for which it is filed. See Accounting Period, later.

Electronic payments. The U.S. Government is transitioning

from paper-based payments (including checks and money

orders) to and from the federal government to electronic

payments to improve efficiency and prevent delays, risks of

fraud, lost payments, and theft.

Making a payment. If there is a balance due on Part II,

line 19, go to IRS.gov/Payments for more information on how

to make a payment. See Line 19—Tax Due under Part II,

later, for more details.

Direct deposit. We have added direct deposit fields on lines

21b–21d. If there is an overpayment on Part II, line 20, enter

your direct deposit information on Part II, lines 21b, 21c, and

21d. See Line 20—Overpayment under Part II, later, for more

information.

Reminders

Global intangible low-taxed income (GILTI). The Tax Cuts

and Jobs Act of 2017 (TCJA) (P.L. 115-97) requires a U.S.

shareholder of any controlled foreign corporation to include in

gross income its GILTI. For more information, see

Line 4—Other Income, later.

Miscellaneous itemized deductions subject to the 2%

floor. Expenses that qualify as miscellaneous itemized

deductions subject to the 2% floor are no longer deductible.

Net investment income tax (NIIT). An estate or trust may

be subject to NIIT. NIIT is a 3.8% tax on the lesser of an

estate’s or trust’s undistributed net investment income or the

excess of the estate’s or trust’s adjusted gross income over a

specified threshold amount. NIIT may need to be included

when figuring estimated tax. In addition, there are special

rules when figuring NIIT for a composite return. See

Composite Return, later.

The trustee of a trust that has elected to be taxed as a

qualified funeral trust (QFT) files Form 1041-QFT to report

Dec 9, 2025

Pre-need funeral trusts that don’t qualify as QFTs should

see the Instructions for Form 1041, U.S. Income Tax Return

for Estates and Trusts, for their filing requirements.

Qualified Funeral Trust (QFT)

What’s New

Purpose of Form

the income, deductions, gains, losses, and tax liability of the

QFT. The trustee can use the form to report information for a

single QFT or for multiple QFTs having the same trustee. If

filing Form 1041-QFT for multiple QFTs, please see the rules

discussed under Composite Return, later.

A QFT is a domestic trust that meets all of the following

requirements.

• The trust arose as a result of a contract with a person

engaged in the trade or business of providing funeral or burial

services or property to provide such services.

• The sole purpose of the trust is to hold, invest, and reinvest

funds in the trust and to use those funds solely to pay for

funeral or burial services or property to provide such services

for the benefit of the beneficiaries of the trust.

• The only beneficiaries of the trust are individuals for whom

such services or property are to be provided at their death

under the contracts described above.

• The only contributions to the trust are contributions by or

for such beneficiaries’ benefit.

• The trustee makes or previously had made the election to

treat the trust as a QFT.

• The trust would’ve been treated as owned by the

purchasers of the contracts under the grantor trust provisions

of the Code if the QFT election hadn’t been made.

Note: A trust that isn’t treated as owned by the purchaser

solely because of the death of an individual will be treated as

meeting this requirement during the 60-day period beginning

on the date of that individual’s death.

If a QFT has multiple beneficiaries, each beneficiary’s

separate interest under a contract is treated as a separate

QFT for the purpose of figuring the tax and filing this return.

Each beneficiary’s share of the trust’s income is determined

in accordance with the beneficiary’s interest in the trust. A

beneficiary’s interest in a trust may be determined under any

reasonable method.

Whenever these instructions refer to a trust or QFT, it

includes such separate interests that are treated as separate

QFTs.

Making the Election

The trustee makes the election to treat a trust as a QFT by

filing Form 1041-QFT for the trust by the due date (including

extensions).

You may elect QFT status for a trust’s first eligible year or

for any subsequent year. Once made, the election can’t be

revoked without the consent of the IRS.

Instructions for Form 1041-QFT (2025) Catalog Number 94082U

Department of the Treasury Internal Revenue Service www.irs.gov

Composite Return

A trustee may file a single, composite Form 1041-QFT for

some or all QFTs of which they are the trustee, including

QFTs that had a short tax year.

You must attach a statement to a composite Form

1041-QFT that includes the following information for each

QFT (or separate interest treated as a separate QFT).

• The name of the owner or the beneficiary. If you list the

name of the owner and that trust has more than one

beneficiary, you must separate the trust into shares held by

the separate beneficiaries.

• The type and gross amount of each type of income earned

by the QFT for the tax year. For capital gains, identify

separately the amount of (a) net short-term capital gain, (b)

net long-term capital gain, (c) 28% rate gain, and (d)

unrecaptured section 1250 gain.

• The type and amount of each deduction and credit

allocable to the QFT.

• The tax and payments made for each QFT.

• The termination date for each QFT that was terminated

during the year.

Note: When calculating NIIT for a composite return, treat

each beneficiary’s interest in each QFT (within the meaning

of section 685) as a separate trust.

When To File

File Form 1041-QFT by April 15, 2026. The due date for a

composite return is also April 15, 2026, even if the return

includes QFTs that terminated during the year. If you are filing

for a short year, file Form 1041-QFT by the 15th day of the

4th month following the close of the short year. If the due date

falls on a Saturday, Sunday, or legal holiday, file by the next

business day.

Private Delivery Services (PDSs)

You can use certain PDSs designated by the IRS to meet the

“timely mailing as timely filing” rule for tax returns. Go to

IRS.gov/PDS for the current list of designated services.

The PDSs can tell you how to get written proof of the

mailing date.

For the IRS mailing address to use if you’re using a PDS,

go to IRS.gov/PDSStreetAddresses.

Caution: PDS can’t deliver items to P.O. boxes. You must

use the U.S. Postal Service to mail any item to an IRS P.O.

box address.

Extension of Time To File

Who Must Sign

Trustee

The trustee, or an authorized representative, must sign Form

1041-QFT.

Paid Preparer

Generally, anyone who is paid to prepare a tax return must

sign the return and fill in the other blanks in the Paid Preparer

Use Only section of the return. The person required to sign

the return must:

• Complete the required preparer information,

• Sign it in the space provided for the preparer’s signature,

and

• Give you a copy of the return in addition to the copy to be

filed with the IRS.

Anyone who is paid to prepare the trust’s return must enter

their preparer tax identification number (PTIN) in the Paid

Preparer Use Only section. The PTIN entered must have

been issued after September 27, 2010. For information, see

Form W-12, IRS Paid Preparer Tax Identification Number

(PTIN) Application and Renewal.

Paid Preparer Authorization

If the trustee wants to allow the IRS to discuss the QFT’s

2025 tax return with the paid preparer who signed it, check

the “Yes” box in the signature area of the return. This

authorization applies only to the individual whose signature

appears in the Paid Preparer Use Only section of the QFT’s

return. It doesn’t apply to the firm, if any, shown in that

section.

If the “Yes” box is checked, the trustee is authorizing the

IRS to call the paid preparer to answer any questions that

may arise during the processing of the QFT’s return. The

trustee is also authorizing the paid preparer to:

• Give the IRS any information that’s missing from the QFT’s

return;

• Call the IRS for information about the processing of the

QFT’s return or the status of its refund or payment(s); and

• Respond to certain IRS notices that the trustee has shared

with the preparer about math errors, offsets, and return

preparation.

The trustee isn’t authorizing the paid preparer to receive

any refund check, bind the QFT to anything (including any

additional tax liability), or otherwise represent the QFT before

the IRS.

Use Form 7004, Application for Automatic Extension of Time

To File Certain Business Income Tax, Information, and Other

Returns, to get an extension of time to file. An extension of

time to file a return doesn’t extend the time to pay the tax.

The authorization will automatically end no later than the

due date (without regard to extensions) for filing the QFT’s

2025 tax return. If the trustee wants to expand the paid

preparer’s authorization or revoke the authorization before it

ends, see Pub. 947, Practice Before the IRS and Power of

Attorney.

Where To File

Accounting Methods

File Form 1041-QFT at the following address.

Department of Treasury

Internal Revenue Service

Kansas City, MO 64999

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Figure taxable income using the method of accounting

regularly used in keeping the QFT’s books and records.

Generally, permissible methods include the cash method, the

accrual method, or any other method authorized by the

Internal Revenue Code. In all cases, the method used must

clearly reflect income.

Instructions for Form 1041-QFT (2025)

Generally, the QFT may change its accounting method (for

income as a whole or for any material item) only by getting

consent on Form 3115, Application for Change in Accounting

Method. For more information, see Pub. 538, Accounting

Periods and Methods.

Accounting Period

All QFTs must use a calendar year as their accounting

period.

At the top of the form, after “calendar year,” enter the

4-digit year. If the return is for less than a full calendar year, fill

in the spaces provided for “beginning” and “ending” at the top

of the form.

Rounding Off to Whole Dollars

You may round off cents to whole dollars on the estate's or

trust's return and schedules. If you do round to whole dollars,

you must round all amounts. To round, drop amounts under

50 cents and increase amounts from 50 to 99 cents to the

next dollar. For example, $1.39 becomes $1 and $2.50

becomes $3.

If you have to add two or more amounts to figure the

amount to enter on a line, include cents when adding the

amounts and round off only the total.

If you are entering amounts that include cents, make sure

to include the decimal point. There is no cents column on the

form.

Estimated Tax

Generally, a QFT must pay estimated income tax for 2025 if it

expects to owe, after subtracting withholding and credits, at

least $1,000 in tax. Estimated tax liability is figured for the

individual QFT, and not for a composite return taken as a

whole. For details and exceptions, see Form 1041-ES,

Estimated Income Tax for Estates and Trusts.

Interest and Penalties

Interest

Interest is charged on taxes not paid by the due date, even if

an extension of time to file is granted. Interest is also charged

on the failure-to-pay penalty, the failure-to-file penalty, the

accuracy-related penalty, and the fraud penalty. The interest

charge is figured at a rate determined under section 6621.

Late Filing of Return

Section 6651 provides for penalties for late filing unless there

is a reasonable cause for the delay. The law also provides for

penalties for willful attempts to evade payment of tax. The

penalty won't be imposed if you can show that the failure to

file on time is due to reasonable cause and not due to willful

neglect.

If you receive a notice about penalty and interest after you

file this return, send us an explanation, and we will determine

if you meet reasonable-cause criteria. Don’t attach an

explanation when you file Form 1041-QFT. For more

information about penalties for late filing, see Late Filing of

Return in the Instructions for Form 1041.

that it remains unpaid. The maximum penalty is 25% of the

unpaid amount. The penalty applies to any unpaid tax on the

return. Any penalty is in addition to interest charges on late

payments.

Underpaid Estimated Tax

If the trustee underpaid estimated tax, use Form 2210,

Underpayment of Estimated Tax by Individuals, Estates, and

Trusts, to figure any penalty.

Caution: If you include interest or any of these penalties with

your payment, identify and enter these amounts in the bottom

margin of Form 1041-QFT. Don’t include the interest or

penalty amount in the balance of tax due on line 19.

Other Penalties

Other penalties can be imposed for negligence, substantial

understatement of tax, and fraud. See Pub. 17, Your Federal

Income Tax, for details on these penalties.

Final Form 1041

If you have an existing EIN(s) that you previously used for

filing Form 1041 and that you won’t use again (that is, for

QFTs included in a composite return), you should file Form

1041 and check the “Final return” box.

Specific Instructions

Part I—General Information

Line 1—Name of Trust

Copy the exact name from the Form SS-4, Application for

Employer Identification Number, used to apply for the EIN

you are using to file Form 1041-QFT.

Line 2—Employer Identification Number (EIN)

If the QFT isn’t filing as part of a composite return, use the

EIN of the QFT. If the QFT doesn’t have an EIN, it must apply

for one. Every trustee that elects to file a composite return

must apply for an EIN to be used only for filing Form

1041-QFT. A trustee must use a separate EIN for every Form

1041-QFT it files.

A QFT without an EIN can apply for one in the following

ways.

• Online—A QFT can receive an EIN by Internet and use it

immediately to file a return. Go to IRS.gov/EIN and click on

“Apply for an EIN Online.”

• By mail or fax—Send in a completed Form SS-4. Form

SS-4 can be obtained online at IRS.gov/OrderForms.

If the QFT hasn’t received its EIN by the time the return is

due, write “Applied for” in the space for the EIN.

Line 3—Address

Late Payment of Tax

Include the suite, room, or other unit number after the street

address. If the post office doesn’t deliver mail to the street

address and you have a P.O. box, show the box number

instead of the street address.

Generally, the penalty for not paying the tax when due is 1/2 of

1% of the unpaid amount for each month or part of a month

If you want a third party (such as an accountant or an

attorney) to receive mail for the QFT, enter “C/O” on the street

Instructions for Form 1041-QFT (2025)

3

address line, followed by the third party’s name and street

address or P.O. box.

If you change your address (including a new “in care of”

name and address) after filing Form 1041-QFT, use Form

8822-B, Change of Address or Responsible Party —

Business, to notify the IRS.

Line 4—Number of QFTs

Deductions

Allocation of Deductions for Tax-Exempt Income

Generally, no deduction that would otherwise be allowable is

allowed for any expense that is allocable to tax-exempt

income, such as interest on state or local bonds.

Exception. State income taxes and business expenses that

are allocable to tax-exempt interest are deductible.

Part II—Tax Computation

Expenses that are directly allocable to tax-exempt income

are allocable only to tax-exempt income. A reasonable

proportion of expenses indirectly allocable to both

tax-exempt income and other income must be allocated to

each class of income.

Composite Return

Limitations on Deductions

Caution: If this is a composite return, enter in Part II the

totals for all the QFTs included on the return.

Generally, the amount a QFT has “at-risk” limits the loss it can

deduct in any tax year. Also, section 469 and its regulations

generally limit losses from passive activities to the amount of

income derived from all passive activities. Similarly, credits

from passive activities are generally limited to the tax

attributable to such activities.

If this is a composite return, enter the total number of QFTs

(including separate interests treated as separate QFTs)

included on the return.

Income

Line 2a—Total Ordinary Dividends

Report all ordinary dividends received during the tax year.

For details on these and other limitations on deductions,

see Deductions in the Instructions for Form 1041.

Report capital gain distributions on Schedule D (Form

1041), line 13.

Line 9—Other Deductions

Line 2b—Qualified Dividends

Attach your own statement, listing by type and amount all

allowable deductions.

Enter on line 2b the amount reported on line 2a that is a

qualified dividend. A qualified dividend is a dividend received

during the tax year from (a) a domestic corporation, or (b) a

qualified foreign corporation. A qualified dividend doesn’t

include any dividend from a corporation if the corporation is

(or was) exempt from income tax under section 501 or 521 for

the tax year during which the distribution was made, any

amount allowed as a deduction under section 591, or any

dividend described under section 404(k).

Caution: QFTs aren’t allowed a deduction for a personal

exemption.

Exception. Some dividends may be reported to the trust as

qualified dividends but aren’t qualified dividends. See the

instructions for line 2b(2) in the 2025 Instructions for Form

1041 for more information.

Line 4—Other Income

Enter all other types of income not included on line 1a, 2a, or

3. List the type and amount on an attached statement if the

QFT(s) has more than one item.

If you are reporting GILTI, include it on the attached

statement. You must also complete and attach Form 8992,

U.S. Shareholder Calculation of Global Intangible Low-Taxed

Income (GILTI).

Include on line 4 the tax that can be reduced by

nonrefundable credits from Form 4255, Part I, line 3, column

(q), if applicable. See the Instructions for Form 4255. Write in

“Recapture of credit on Form 4255.”

4

Line 12—Tax

Tax rate schedule. Unless the instructions that follow for

Schedule D or a composite return apply, figure the tax using

the 2025 Tax Rate Schedule below. Enter the tax on line 12.

2025 Tax Rate Schedule

If taxable

income

is over—

$0

3,150

11,450

15,650

But

not

over—

$3,150

11,450

15,650

----

Its tax is:

10%

$315 + 24%

2,307 + 35%

3,777 + 37%

Of the

amount

over—

$0

3,150

11,450

15,650

Schdeule D. If the QFT had both a net capital gain and any

taxable income, or any qualified dividends and any taxable

income, complete Part V of Schedule D (Form 1041), and

then enter the tax from line 45 of Schedule D on line 12.

Composite return. If this is a composite return, check this

box and enter on line 12 the total of the tax figured separately

for each QFT using either the 2025 Tax Rate Schedule above

or Schedule D (Form 1041).

Instructions for Form 1041-QFT (2025)

Line 13—Credits

Specify the type of credit being claimed and attach any

required credit forms. If you are claiming more than one type

of credit, attach a statement listing the type and amount of

each credit claimed. See the Instructions for Form 1041 for

details on the credits that may be claimed.

Line 15—Net Investment Income Tax

For tax years beginning on or after January 1, 2013, a QFT

may be liable for the NIIT enacted under section 1411. To

determine if this tax applies, see Form 8960, Net Investment

Income Tax—Individuals, Estates, and Trusts, and its

instructions.

Line 16—Total Tax

If the QFT owes any additional taxes (for example, alternative

minimum tax, recapture taxes, etc.), include these taxes on

line 16. To the left of the entry space, write the type and

amount of the tax. Also attach to Form 1041-QFT any forms

required to figure these taxes (for example, Schedule I (Form

1041)). See the Instructions for Form 1041 for more details

on additional taxes that may apply.

Paying by check. Make the check payable to “United States

Treasury.” Write the donor’s taxpayer identification number

and “Form 1041-QFT” to assist us in posting it to the proper

account. Go to IRS.gov/PayByMail for more information.

Paying by cash. You may be able to pay your balance due

with cash at a participating retail store. Go to IRS.gov/

PayByCash for more information.

Line 20—Overpayment

If you have access to U.S. banking services, you should use

direct deposit for any refunds, whenever possible. Go to

IRS.gov/DirectDeposit for more information.

If there’s an overpayment, complete Part II, lines 20b–20d,

to enter your banking information and receive your refund by

direct deposit.

Line 21a

Credited to Your 2026 Estimated Tax

Include on line 16 the tax that can’t be reduced by

nonrefundable credits from Form 4255, Part I, line 3, column

(r), if applicable. See the Instructions for Form 4255.

Enter on line 21a the amount, if any, of the overpayment

on line 20 you want applied to your 2026 estimated tax. We

will apply this amount to your account unless you include a

statement requesting us to apply it to your spouse’s account.

Include your spouse’s social security number in the

statement.

Line 17—Payments

Line 21b

Include on line 17 any of the following.

• Estimated tax payments made.

• Tax paid with a request for an extension of time to file.

• Federal income tax withheld (for example, backup

withholding).

• Credit for tax paid on undistributed capital gains. Also

attach Copy B of Form 2439, Notice to Shareholder of

Undistributed Long-Term Capital Gains.

Enter the amount of overpayment that you would like to

receive as a refund.

Line 18—Elective Payment Election

Enter any elective payment election amount from Form 3800,

Part III, line 6, column (j). See the Instructions for Form 3800.

Line 19—Tax Due

If the total of lines 17 and 18 is smaller than line 16, this is the

amount you owe.

Payments made to the federal government must be

processed electronically. Go to IRS.gov/Payments for more

information on how to make a payment and also see EFTPS

and Same-day Wire below.

EFTPS. Payment of the tax due may be submitted

electronically through the Electronic Federal Tax Payment

System (EFTPS). EFTPS is a free service of the Department

of the Treasury. Go to IRS.gov/EFTPS and EFTPS.gov for

more information.

Same-day wire. Payment of the tax due may be submitted

electronically through same-day wire from your financial

institution. Contact your financial institution for availability,

cost, and time frames. Go to IRS.gov/SameDayWire for more

information.

Instructions for Form 1041-QFT (2025)

Line 21c

The routing number for your financial institution must be nine

digits. The first two digits must be 01 through 12 or 21

through 32. Otherwise, the direct deposit will be rejected and

a check sent instead.

Line 21d

Check the appropriate box for the type of account. Don’t

check more than one box. You must check the correct box to

ensure your deposit is accepted.

Line 21e

The account number can be up to 17 characters (both

numbers and letters). Include hyphens but omit spaces and

special symbols. Enter the number from left to right and leave

any unused boxes blank. Don’t include the check number.

Paperwork Reduction Act Notice. We ask for the

information on this form to carry out the Internal Revenue

laws of the United States. You are required to give us the

information. Our legal right to ask for this information is in

Internal Revenue Code sections 685, 671, 6011, and 6012,

and their associated regulations. We need it to ensure that

you are complying with these laws and to allow us to figure

and collect the right amount of tax. You are not required to

provide the information requested on a form that is subject to

the Paperwork Reduction Act unless the form displays a valid

OMB control number. Books or records relating to a form, or

5

its instructions must be retained as long as their contents

may become material in the administration of any Internal

Revenue law. Generally, tax returns and return information

are confidential, as required by section 6103. The time

needed to complete and file this form will vary depending on

individual circumstances. The estimated burden for trusts

filing this form is approved under OMB control number

1545-0092 and is included in the estimates shown in the

Instructions for Form 1041.

6

If you have comments concerning the accuracy of these

time estimates or suggestions for making this form simpler,

we would be happy to hear from you. You can send us

comments through IRS.gov/FormComments. Or you can

send your comments to Internal Revenue Service, Tax Forms

and Publications, 1111 Constitution Ave. NW, IR-6526,

Washington, DC 20224. Don’t send the tax form to this

address. Instead, see Where To File, earlier.

Instructions for Form 1041-QFT (2025)