Updated October 18, 2026. Quick answer: Schedule A figures the charitable deduction that goes on line 13 of Form 1041. Line 1 takes amounts paid or permanently set aside for charitable purposes from gross income, and later lines adjust for tax-exempt income, capital gains and any section 1202 exclusion. Line 7 is the deduction.
More IRS forms and schedules, read line by line: Form 5227 instructions.
What Schedule A does
The form titles it “Charitable Deduction.” and adds “Don’t complete for a simple trust or a pooled income fund.” The instructions open with “any part of the gross income of an estate or trust (other than a simple trust) that, under the terms of the will or governing instrument, is paid (or treated as paid) during the tax year for a charitable purpose specified in section 170(c) is allowed as a deduction to the estate or trust.” They add “It isn’t necessary that the charitable organization be created or organized in the United States.” For the planning side see charitable bequests.
Line 1: amounts paid or set aside
The form’s caption is “Amounts paid or permanently set aside for charitable purposes from gross income.” The instructions say “Enter amounts that were paid for a charitable purpose out of the estate’s or trust’s gross income”, and “Estates, and certain trusts, may claim a deduction for amounts permanently set aside for a charitable purpose from gross income.”
A warning on capital gains: “Don’t include any capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes.” “Instead, enter these amounts on line 4.”
Lines 2 and 3: tax-exempt income
Line 2 reads “Tax-exempt income allocable to charitable contributions.” and line 3 reads “Subtract line 2 from line 1”. The instructions say “Any estate or trust that pays or sets aside any part of its income for a charitable purpose must reduce the deduction by the portion allocable to any tax-exempt income.”
If the document speaks to it: “If the governing instrument specifically provides as to the source from which amounts are paid, permanently set aside, or to be used for charitable purposes, the specific provisions control.”
Lines 4 to 7: gains, exclusion and the result
Line 4 is described as “Enter the total of all capital gains for the tax year that are:” allocated to corpus and paid or permanently set aside for charitable purposes. Line 5 is “Add lines 3 and 4”. For line 6: “enter the part of the gain included on Schedule A, lines 1 and 4, that was excluded under section 1202.” Line 7 is “Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13”.
Related elections and filings
The instructions allow an election for contributions made after year end: “The fiduciary of an estate or trust may elect to treat as paid during the tax year any amount of gross income received during that tax year or any prior tax year that was paid in the next tax year for a charitable purpose.” For the filing, “To make the election, the fiduciary must file a statement with Form 1041 for the tax year in which the contribution is treated as paid.” The deadline: “The election must be filed by the due date (including extensions) for Form 1041 for the next tax year.” See also Form 1041 due date and extension.
Some trusts also have a second return: “Pooled income funds and charitable lead trusts also file Form 5227.” The charitable lead trusts page covers that trust type.
Where the number comes from
Lines 1 and 4 come from the estate’s or trust’s payment records and the governing document, which says what was paid or set aside. Line 2 comes from the income records that show any tax-exempt income. Line 6 comes from the basis records for any qualified small business stock gain. Lines 3, 5 and 7 are subtraction and addition on the schedule.
Where it goes next
Line 7 goes to page 1. The form says “Enter here and on page 1, line 13”. On Schedule B, line 4 reads “Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion)”, as covered on the Schedule B lines 1 to 8 page. Page 1 continues on the lines 13 and 14 page.
Edition and line numbers
This page reads Form 1041 (2025) and the 2025 Instructions for Form 1041 and Schedules A, B, G, J, and K-1. Those are the current files irs.gov served on 2026-10-18, byte-identical to the archived copies. The form reads “For calendar year 2025 or fiscal year beginning” and the instructions carry the title “Instructions for Form 1041 (2025)”. Check the year printed on your own Form 1041 and use the line numbers on that year’s form.
Common mistakes
- Putting capital gains allocated to corpus on line 1. The instructions say “Instead, enter these amounts on line 4.”
- Forgetting to reduce for tax-exempt income. The instructions say the estate or trust “must reduce the deduction by the portion allocable to any tax-exempt income.”
- Completing Schedule A for a simple trust. The form says “Don’t complete for a simple trust or a pooled income fund.”
Related: Form 1041, charitable bequests, charitable lead trusts, and Form 1041 due date and extension.
Sources
- Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (2025), U.S. Income Tax Return for Estates and Trusts: https://www.irs.gov/pub/irs-pdf/i1041.pdf
- Form 1041 (2025), U.S. Income Tax Return for Estates and Trusts: https://www.irs.gov/pub/irs-pdf/f1041.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.