If the estate or trust received tax-exempt income, figure the allocation of expenses between tax-exempt and taxable income on a separate sheet and attach it to the return. Enter only the deductible amounts on the return. Do not figure the allocation on the return itself. For more information, see the instructions for Allocation of Deductions for Tax-Exempt Income, earlier.
Report the amount of tax-exempt interest income received or accrued in the space provided below Question 1.
Also, include any exempt-interest dividends the estate or trust received as a shareholder in a mutual fund or other regulated investment company.