How Do You Report Income From Schedule K-1 Form 1041?
Many people will be a beneficiary of an estate or trust at some time in their life. Estates and trusts which file Form 1041 Income Tax Return for Estates and Trusts, are required to send Schedule K-1 to beneficiaries to report distributions of income during the year. The various types of income from these entities are to be reported on your individual income tax return on specific lines and in specific schedules. Step 1 Review the Schedule K-1 which you received from the fiduciary of the trust or estate to determine if the income amounts on the Schedule K-1 agrees with the amounts you actually received during the year. Resolve any discrepancies with the fiduciary so that a revised K-1 can be filed if necessary. Step 2 Report your share of investment as shown on the Schedule K-1 on your individual tax return. Report interest and dividends on Lines 8 and 9 of your Form 1040. Report capital gains on Lines 5 and 12 of Schedule D. Step 3 Include annuity income, royalties, trade or business
