Updated October 18, 2026. Quick answer: The second half of Schedule B turns what the estate or trust actually distributed into the income distribution deduction on Form 1041. Lines 9 and 10 take the two kinds of distributions, line 11 adds them, line 12 removes the tax-exempt part, and lines 13 to 15 compare two tentative amounts and carry the smaller one to page 1. The amounts come from the governing document and the fiduciary’s distribution records.
IRS trust and estate tax forms, read line by line: Form 1041-T, Form 1041-T lines 1 to 4 and Schedule J Part I lines 1 to 5.
What lines 9 to 15 do
The form titles the schedule “Income Distribution Deduction”. The first half, Schedule B lines 1 to 8, reaches distributable net income on line 7 and accounting income on line 8. Lines 9 to 15 are the part where distributions are entered and compared with those two numbers. The general idea behind the deduction is explained on the distribution deduction and DNI page.
Line 9: income required to be distributed currently
The form’s caption is “Income required to be distributed currently”. The instructions say “Line 9 is to be completed by all simple trusts as well as complex trusts and decedents’ estates that are required to distribute income currently, whether it is distributed or not.”
What counts depends on the documents: “The determination of whether trust income is required to be distributed currently depends on the terms of the governing instrument and the applicable local law.” On the effect: “are deductible by the estate or trust to the extent of the DNI.” And for the person who receives it, “The beneficiary includes such amounts in their income to the extent of their proportionate share of the DNI.”
Line 10: other amounts paid, credited, or required to be distributed
The instructions limit who fills in this line: “Line 10 is to be completed only by a decedent’s estate or complex trust.” They describe what it holds: “Such amounts include annuities to the extent not paid out of income, mandatory and discretionary distributions of corpus, and distributions of property in kind.”
Two special cases appear in the instructions. For estimated tax: “If Form 1041-T was timely filed to elect to treat estimated tax payments as made by a beneficiary, the payments are treated as paid or credited to the beneficiary on the last day of the tax year and must be included on line 10.” And for a late-in-the-year distribution: “A fiduciary of a complex trust or a decedent’s estate may elect to treat any amount paid or credited to a beneficiary within 65 days following the close of the tax year as being paid or credited on the last day of that tax year.”
Lines 11 and 12: total distributions and the tax-exempt adjustment
Line 11 reads “Total distributions. Add lines 9 and 10.” The instructions add a pointer: “If line 11 is more than line 8, and you are filing for a complex trust that has previously accumulated income, see the instructions for Schedule J”.
Line 12 is captioned “Enter the amount of tax-exempt income included on line 11”. The instructions explain the reason: “In figuring the income distribution deduction, the estate or trust isn’t allowed a deduction for any item of the DNI that isn’t included in the gross income of the estate or trust.” For the simplest case they say “If tax-exempt interest is the only tax-exempt income included in the total distributions (line 11), and the DNI (line 7) is less than or equal to line 11, then enter on line 12 the amount from line 2.”
Lines 13 to 15: from tentative amounts to the deduction
These three lines are arithmetic on the numbers above. The form’s captions are “Tentative income distribution deduction. Subtract line 12 from line 11” for line 13 and “Subtract line 2 from line 7.” for line 14. Line 15 finishes the schedule: “Enter the smaller of line 13 or line 14 here and on page 1, line 18”.
Where the number comes from
Lines 9 and 10 come from the fiduciary’s distribution records, read against the will or trust document, since the instructions tie line 9 to the governing instrument. The Schedules K-1 given to beneficiaries should agree with these totals; the Schedule K-1 boxes page walks through them. Lines 11, 13, 14 and 15 are arithmetic, and line 12 comes from the tax-exempt amounts in the records.
Where it goes next
The result on line 15 is carried to page 1. The form’s caption for page 1, line 18 is “Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041)”. That line and its neighbors are covered on the lines 18 to 22 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
- Filling in line 10 for a simple trust. The instructions say “Line 10 is to be completed only by a decedent’s estate or complex trust.”
- Guessing at what is required to be distributed. The instructions say “The determination of whether trust income is required to be distributed currently depends on the terms of the governing instrument and the applicable local law.”
- Skipping the pointer on line 11 for a complex trust with accumulated income. The instructions say “If line 11 is more than line 8, and you are filing for a complex trust that has previously accumulated income, see the instructions for Schedule J”
Related: Form 1041, distribution deduction and DNI, Schedule K-1 boxes, and Schedule K-1 for estates.
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.