Schedule K-1 (Form 1041) is prepared by the fiduciary of an estate or trust as part of the filing of their tax return. After filing Form 1041, the fiduciary will provide a beneficiary a Schedule K-1 1041 that reflects the beneficiary’s share of income, deductions, credits, and other items that the beneficiary will need to report on their individual tax return.
K-1 1041 Form:
The Schedule K-1 (Form 1041) consists of three parts:
Part I - Information about the Estate or Trust. This section contains the basic information about the estate or trust such as the Taxpayer Identification Number, the Name of the estate or trust, and the Fiduciary’s Name and Address.
If the estate or trust has filed a Final 1041 for that entity this tax year, it will be indicated in Item E of this section. This is relevant to the taxpayer since certain loss items can only be reported to the beneficiary in the final Schedule K-1 (Form 1041) and will be reflected in the final year deductions.
Also, contained in this section is whether the estate or trust filed Form 1041-T which only occurs when a trust or, for its final tax year, an estate may elect to have any part of its estimated tax payments (but not income tax withheld) treated as made by a beneficiary or beneficiaries.
Part II - Information about the Beneficiary. This section contains information about the beneficiary. Specifically, this section identifies whether the beneficiary is a domestic or foreign.
Part III – Beneficiary’s Share of Current Year Income, Deductions, Credits, and Other Items. This section is used to report the beneficiary’s share of any of the estate or trust’s Income, Deductions, Credits, etc.
If you received a Schedule K-1 (Form 1041) as a beneficiary, to enter this in your account, go to:
- Income (select my forms)
- Less Common Income
- K-1 Earnings
- Schedule K-1 Form 1041
The Schedule K-1 that you receive should only reflect your share of the income, deductions, and expenses as applicable.
Note: Some items reported on your Schedule K-1 (Form 1041) may need to be entered directly into a specific form instead of the K-1 entry screen. Please refer to the links above to find out if this is the case for any items that do not have an entry field located in the K-1 entry screen.