Section 1(e) of the Internal Revenue Code imposes an income tax on estate and trusts. 2021 federal income tax rates for estates and trusts are included in Revenue Procedure 2020-45. They are as follows:

If taxable income is: The tax is:

• Not over $2,650  – 10% of taxable income
• Over $2,650, but not over $9,550 – $265 plus 24% of the excess income over $2,650
• Over $9,550, but not over $13,050 – $1,921 plus 35% of the excess income over $9,550
• Over $13,050 – $3,146 plus 37% of the excess income over $13,050

Tax returns for estates and trusts are filed on Form 1041. See Instructions for Form 1041.

About Form 1041 @ IRS.gov

See IR Notice 2020-245, accompanying Rev. Proc. 2020-45

Resources:

• Do I Need to File a Tax Return?
• How Do I File a Deceased Person’s Tax Return?