# Enrolled Agent Exam [Part 2] 80, Trust Income Tax — Form 1041 Basics

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Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-07-16T22:41:20+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/7b6a534a-7bed-4f85-8a05-75b931e6cbc4.mp3
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Duration seconds: 192

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The purpose of Form 1041 for reporting income for estates and trusts. - How severely compressed tax brackets cause trust income to be taxed at the highest rates at very low thresholds. - The fundamental pass-through principle: trusts are taxed on retained income, while beneficiaries are taxed on distributed income. - The role of Distributable Net Income (DNI) as a ceiling on both the trust's distribution deduction and the beneficiary's taxable income. - The requirement for most trusts to use a calendar tax year and how Schedule K-1 is used to report income to beneficiaries. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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