Updated September 29, 2026. Quick answer: Box 11 code B is excess deductions on termination that are non-miscellaneous itemized deductions. On the final return of the estate or trust, the beneficiary may deduct them on the applicable line of Schedule A. The fiduciary provides a statement of the allowable deductions.
What code B means
The instructions read here are the 2025 edition of the IRS Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (Catalog Number 11374Z, dated March 13, 2025), the edition served at the IRS standing PDF address when read on September 29, 2026. They are written for the beneficiary; the fiduciary’s own instructions are in the Instructions for Form 1041. The IRS instruction reads: “If this is the final return of the estate or trust, and there are excess deductions on termination that are non-miscellaneous itemized deductions reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code B, on the applicable line of Schedule A (Form 1040).” “The fiduciary will provide you with a statement of allowable deductions.”
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| B | Excess deductions, Non-miscellaneous itemized deductions | See the beneficiary’s instructions |
Carryover
“A beneficiary who doesn’t have enough income in the tax year to absorb the entire deduction can’t carry the balance to any succeeding year.”
Miscellaneous itemized deductions are excluded
The instructions include a note: “Section 67(g) suspends miscellaneous itemized deductions subject to the 2% floor for tax years 2018 through 2025. Therefore, miscellaneous itemized deductions are not deductible as excess deductions on termination.” That statement is written for the 2025 edition and is not updated for anything enacted later, so confirm the current rule for the year on your form. The instructions add: “Consult your state taxing authority for information about deducting miscellaneous itemized deductions on your state tax return.”
Compare code A
The section 67(e) version, which is an adjustment to income rather than an itemized deduction, is on the Box 11 code A page.
Common mistakes
- Expecting a fixed dollar line. The fiduciary provides a statement of allowable deductions, and you use the applicable line of Schedule A.
- Treating miscellaneous itemized deductions as deductible under code B. The 2025 instructions say they are not.
- Carrying an unused amount forward. The instruction says the balance cannot be carried.
Related: Schedule K-1 Box 11 Code A: Excess Deductions 67(e), Schedule K-1 Box 11 Codes C and D: Capital Loss Carryover, and the estate’s Form 1041.
Every box and code in one place: the Schedule K-1 (Form 1041) boxes table. What a K-1 from an estate reports overall is on the Schedule K-1 for estates page.
Sources
- IRS, Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf
- IRS, Schedule K-1 (Form 1041) 2025, Beneficiary’s Share of Income, Deductions, Credits, etc., page 2 code list: https://www.irs.gov/pub/irs-pdf/f1041sk1.pdf
Source: the IRS instructions for the beneficiary who receives Schedule K-1 (Form 1041), and the form’s own code list, read at irs.gov on September 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the estate’s or trust’s fiduciary or the IRS is the right place to confirm anything consequential.