Updated September 29, 2026. Quick answer: Box 11 code A is excess deductions on termination that are section 67(e) expenses. It appears only when this is the final return of the estate or trust, and the beneficiary who succeeds to the property may deduct it as an adjustment to income on Schedule 1 (Form 1040), Part II, line 24k.
What code A 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 section 67(e) expenses reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code A, as an adjustment to income.” “Report this amount on Schedule 1 (Form 1040), Part II, line 24k.”
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| A | Excess deductions, Section 67(e) expenses | Schedule 1 (Form 1040), line 24k (also see the beneficiary’s instructions) |
When excess deductions exist
“Excess deductions on termination occur only during the last tax year of the trust or decedent’s estate when the total deductions (excluding the charitable deduction and exemption) are greater than the gross income during that tax year.”
Who can deduct them, and the carryover limit
“Only the beneficiary of an estate or trust that succeeds to its property is allowed to deduct that entity’s excess deductions on termination.” “A beneficiary who doesn’t have enough income in that year to absorb the entire deduction can’t carry the balance over to any succeeding year.”
The character of the deduction
The instructions’ Reminders section says: “each excess deduction on termination of an estate or trust retains its separate character as an amount allowed in arriving at adjusted gross income, a non-miscellaneous itemized deduction, or a miscellaneous itemized deduction.” Code B is the non-miscellaneous itemized version: the Box 11 code B page. For examples of allowable excess deductions the instructions refer to the Final Regulations, TD9918.
Common mistakes
- Looking for code A on a year that is not the final year. The instruction ties it to the final return of the estate or trust.
- Trying to carry an unused excess deduction to next year. The instruction says it cannot be carried over.
- Confusing code A with a capital loss or NOL carryover. Those are codes C through F.
Related: Schedule K-1 (Form 1041) Box 10: Estate Tax Deduction, Schedule K-1 Box 11 Code B: Itemized Excess Deductions, 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.