Schedule Q (Form 1066) – Quarterly Notice to Residual Interest Holder

Last reviewed: 2025-10-26

Use the Form 1066sq: Schedule Q (Form 1066) – Quarterly Notice to Residual Interest Holder Tax Form Calculator Form 1066sq: Schedule Q (Form 1066) – Quarterly Notice to Residual Interest Holder as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 1066sq state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Schedule Q is issued by REMICs to report quarterly allocations of taxable income, net loss, and excess inclusion income to each residual interest holder. It accompanies Form 1066 and is essential for investor-level reporting. Each residual interest holder receives a separate Schedule Q per quarter.Line items include:

Lines 1–6: Individual categories of taxable income or loss allocated for the quarter.
Line 7: Sum of all applicable income and loss categories, automatically calculated.

The REMIC must generate these notices in a timely fashion and ensure values match those reported in Form 1066 and Schedule J.

Quarterly Notice to Residual Interest Holder of REMIC Taxable Income or Net Loss Allocation
A	What type of entity is this residual interest holder? See Form 1066 instructions. ▸
B	Enter residual interest holder’s percentage of ownership of all residual interests: 1 Before change ▸ % 2 End of quarter ▸ %
C	Enter the percentage of the REMIC’s assets for the quarter represented by each of the following: 1 Real estate assets under section 856(c)(5)(B) ▸ % 2 Assets described in section 7701(a)(19)(C) (relating to the definition of a domestic building and loan association) ▸ %
D	Internal Revenue Service Center where REMIC files return ▸
E	Check applicable boxes: (1) Final Schedule Q (2) Amended Schedule Q
F	Reconciliation of residual interest holder’s capital account
(a) Capital account at beginning of quarter		(b) Capital contributed during quarter	(c) Taxable income (net loss) from line 1b below	(d) Nontaxable income	(e) Unallowable deductions		(f) Withdrawals and distributions		(g) Capital account at end of quarter (combine cols. (a) through (f))

Caution: See Instructions for Residual Interest Holder on page 2 before entering information from this schedule on your tax return.
1a	Taxable income (net loss) of the REMIC for the calendar quarter					1a
b	Your share of the taxable income (net loss) for the calendar quarter							1b
2a	Sum of the daily accruals under section 860E for all residual interests for the calendar quarter					2a
b	Sum of the daily accruals under section 860E for your interest for the calendar quarter							2b
c	Excess inclusion for the calendar quarter for your residual interest (subtract line 2b from line 1b, but don't enter less than zero)							2c
3	Residual interest holders who are individuals or other pass-through interest holders (see Form 1066 instructions). Not required to be completed for other entities.
a	Section 212 expenses of the REMIC for the calendar quarter					3a
b	Your share of section 212 expenses for the calendar quarter. If you're an individual, this amount must be included in gross income in addition to the amount shown on line 1b. See instructions on page 2 for how to report this amount as a miscellaneous itemized deduction							3b

The IRS requires Schedule Q to be furnished both to the IRS and to residual interest holders no later than the last day of the month following the close of each calendar quarter. A complete and accurate Schedule Q is vital for downstream tax reporting and compliance.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

To simplify reporting, use our Schedule Q Calculator. This tool reflects the official layout and auto-totals line 7. While the IRS no longer provides fillable PDFs for this form, our version supports accurate, printable output aligned with official reporting standards.

Frequently Asked Questions

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Start with Form 3800 and then reflect the credit here.

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Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

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Read through Form 656-B to understand eligibility and steps.

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FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.