How to report the R&D tax credit on Form 1041

The route

Form 1041 (2025)

Step	Form and line	Revision checked
Compute the credit	Form 6765, line 30, then line 31 allocates to beneficiaries and line 32 keeps the rest	Form 6765 (Rev. December 2024)
Pass to beneficiaries	Schedule K-1 (Form 1041), box 13, code I	Instructions for Form 6765 (Rev. December 2025), line 29
Entity applies the limitation	Form 3800, Part III, line 1c, then Part II, line 38	Form 3800 (2025)
Claim on the return	Form 1041, Schedule G, Part I, line 2b, General business credit, attach Form 3800	Form 1041 (2025)
Deduct the research cost	Section 174A deduction with other deductions on line 15a; amortized amounts on Form 4562, Part VI	Instructions for Form 4562 (2025)
Amend a prior year	Form 1041 with the amended return box checked	Instructions for Form 1041 (2025)

Steps for the preparer

Attach Form 6765 completed through line 32. Line 31 allocates the credit between the estate or trust and the beneficiaries in the same proportion as income was allocated. The Form 6765 guide covers each section.
Report each beneficiary share on Schedule K-1 (Form 1041), box 13, code I. The beneficiary enters it on Form 3800, Part III, line 1c, with the estate or trust EIN in column (c).
File Form 3800 for the entity share from Form 6765, line 32, on Part III, line 1c. The Form 3800 guide covers the limitation.
Enter Form 3800, line 38 on Schedule G, Part I, line 2b. Line 2e totals the credits against the tax on line 1.
Report the expense. For tax years beginning after December 31, 2024, domestic research or experimental expenditures are deducted in the year paid or incurred under Section 174A, or capitalized and amortized over not less than 60 months by election. Foreign research stays under Section 174 and is amortized over 15 years. Amortized amounts are reported on Form 4562, Part VI, with 174A in column (d). Revenue Procedure 2025-28 sets out the transition choices for costs capitalized in 2022 through 2024.

Amended returns

An estate or trust amends by filing Form 1041 with the amended return box checked and issuing corrected Schedules K-1. A claim on an amended return must identify each business component and the research activities performed on it, and state the total qualified wages, supplies, and contract research. A completed Form 6765 supplies the totals. Through January 10, 2027 the IRS allows 45 days to perfect a deficient claim before ruling on it. Up to three prior tax years can be claimed by amended return.

Common questions

Can the trust keep the whole credit?

Only to the extent income was kept. Line 31 of Form 6765 follows the income allocation, so a trust that distributes all its income passes the whole credit to beneficiaries.

Where is code I confirmed?

In the line 29 instructions for Form 6765, revised December 2025. The 2025 Schedule K-1 (Form 1041) beneficiary instructions do not list the research credit by name, so check the current code list when preparing the K-1.

Can an estate or trust make the payroll tax election?

No. The election is limited to corporations, S corporations, and partnerships.

Sources

Related guides

Form 6765Completing Form 6765, the credit form itself.
Form 3800Where the research credit goes on Form 3800 and how it reaches the return.
Form 1120C corporations: Schedule J, Section 174A, and Form 1120-X.
Form 1120-SS corporations: Schedule K line 13g, K-1 box 13 code M, and the shareholder.
Form 1065Partnerships: Schedule K line 15f, K-1 box 15 code M, and the partner.
Form 1040Individuals: Schedule 3 line 6a, Schedule C, and Form 1040-X.

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