Schedule k-1 1041 beneficiary

Forum|Forum|1 year ago
March 7, 2025
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My husband received a Schedule K-1 1041 for calendar year 2023 in late 2024 from his stepfather's estate trust. I know we need to amend our 2023 return, which I did using TurboTax. I feel I entered all the information correctly per the step by step questions. The K-1 had information on lines 2a, 2b, 4a, 5 and line 14 with codes A, B and H, and it appears all the information flowed to the correct lines on the amended return. My question is...is it correct that it increased our income caused by the amount in line 4a? When TurboTax asks to add up all the income, I used the information on line 2a, 4a and 5. (2a and 2b were actually the same amount), was that correct? Since 4a was a large amount, it increased our income significantly, resulting in a large amount of tax due. I need to know if I handled this correctly. Thanks in advance for your help and guidance.

PatriciaV

Employee

Yes, the income from Form 1041 Schedule K-1 may potentially increase your taxable income. Box 4a is long-term capital gain, which should be subject to a lower tax rate, depending on your other income. If you entered the information from the K-1 accurately, TurboTax will update your taxable income accordingly. You can review the calculation of your tax liability on the Form 1040 Worksheet that is included in the forms and worksheets of your complete return.

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