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1041 K-1 section 14 Other Information, Line I

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March 13, 2025
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My 1041 K-1 line 14 I asks for additional information related to foreign income in the form of 3 questions: 1) Gross income sourced at the Beneficiary level, 2) Gross income sourced at the Beneficiary level, US Source, 3) Gross income sourced at the Beneficiary level, Foreign Source.

All the information comes from my 1099 and the countries are RIC. I can figure out the gross of the foreign source but not sure what the beneficiary level and beneficiary level, US source means.

Any thoughts?

Thanks

Best answer by DaveF1006

The term "beneficiary level" in the context of your 1041 K-1 refers to income that is allocated to you as a beneficiary of the trust or estate. Essentially, it means the portion of income that is distributed to you, rather than retained by the trust or estate.

Here’s a breakdown of the three categories:

Gross Income Sourced at the Beneficiary Level: This is the total income allocated to you, regardless of whether it's from U.S. or foreign sources.
Gross Income Sourced at the Beneficiary Level, U.S. Source: This refers to the portion of the income distributed to you that originates from U.S. sources.
Gross Income Sourced at the Beneficiary Level, Foreign Source: This is the portion of the income distributed to you that originates from foreign sources.

Since your 1099 provides the details of foreign income, you can use that to determine the foreign source portion. For the U.S. source portion, you would need to identify income that is not foreign—this could include dividends, interest, or other income from U.S.-based entities.

Your K-1 and 1099's come with supplementary disclosure forms. Look through these forms because they may have important information about income sources at the beneficiary level to report on your return.

DaveF1006Answer

The term "beneficiary level" in the context of your 1041 K-1 refers to income that is allocated to you as a beneficiary of the trust or estate. Essentially, it means the portion of income that is distributed to you, rather than retained by the trust or estate.

Here’s a breakdown of the three categories:

Gross Income Sourced at the Beneficiary Level: This is the total income allocated to you, regardless of whether it's from U.S. or foreign sources.
Gross Income Sourced at the Beneficiary Level, U.S. Source: This refers to the portion of the income distributed to you that originates from U.S. sources.
Gross Income Sourced at the Beneficiary Level, Foreign Source: This is the portion of the income distributed to you that originates from foreign sources.

Since your 1099 provides the details of foreign income, you can use that to determine the foreign source portion. For the U.S. source portion, you would need to identify income that is not foreign—this could include dividends, interest, or other income from U.S.-based entities.

Your K-1 and 1099's come with supplementary disclosure forms. Look through these forms because they may have important information about income sources at the beneficiary level to report on your return.

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kwelch0424Author

Thank you for you detailed and thoughtful response David! That's what I ended up doing is calculating it that way. It was like process of elimination and the numbers fell into place.