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Old 04-12-2015, 08:02 PM
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Need help with Form 1041 Schedule K-1

I inherited some money from my uncle's estate. I just received an already filled out Schedule K-1 Form 1041, but looking at the form I have no idea of how much income is subject to tax and where to enter it on form 1040.

I used TurboTax Pro to prepare my takes and already filed my return, so I will have to file a revised one. I opened up TurboTax to try and figure out what to do but it says you need TurboTax Business to complete Form 1041.

This is what my form says:
Boxes 1-10 are empty
Box 11 A 849
Box 11 B 13
Box 11 C 3471
Box 11 D 17
Box 11 E 68
Boxes 12 and 13 are blank
Box 14 A 12
Box 14 I 13
Box 14 I 3464

There are five supporting statements and foot notes. All the documents are here:
https://www.dropbox.com/s/b8l425sigs...xDocs.pdf?dl=0
Can anyone tell me how much taxable income I received and where to add it on my 1040?



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Old 04-12-2015, 09:39 PM
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Box 11 A 849======>>>>>you need to report $849 on your Sch A of 1040 line 23 , 2% of AGI, so to deduct it you need to itemize your deductions on your return. If not, you cannot claim it.
Box 11 B 13======>>>>>>>you need to report it on your Sch D of 1040 line 5 as short term capital gain.
Box 11 C 3471=========>>>>>>report it on SCh D of 1040 line 12 an dline 5 of the worksheet for Sch D and line 18 and line 16 for worksheet and line 19 0n Sch D of 1040.
Box 11 D 17=======>>>>>>you need to report it on 1040line 21 as NOL to offset against other taxable gross income.
Box 11 E 68==========>>>>it needs to be reported AMT form 6251 line 11.
Boxes 12 and 13 are blank
Box 14 A 12=======>>it is nontaxable reported on 1040 line 8b.
Box 14 I 13 and Box 14 I 3464=========>>>>>You need to check it with your beneficiary instructions for help. You may get some knowledge on it from a trustee/executor.

There are five supporting statements and foot notes. All the documents are here:
https://www.dropbox.com/s/b8l425sigs...xDocs.pdf?dl=0
Can anyone tell me how much taxable income I received and where to add it on my 1040?=====>>>>>>>>>..As mentioned above; for tech help , you need to contact the software vendor



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Old 04-13-2015, 12:57 PM
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Join Date: Apr 2015
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Thanks for your reply.
I don't have enough deductions to itemize. Even with this $849 it will still be better for me to take the standard deduction.

I was able to upgrade TurboTax Home and Business for FREE.
I went to the section on Schedule K-1 and went through the Q&A.
TT generated a 1040X Amended Return. I ended up paying less tax than before.

TT filled in all the boxes on the forms and worksheets as you described, except for this:
Quote:
Box 11 C 3471=========>>>>>>report it on SCh D of 1040 line 12 an dline 5 of the worksheet for Sch D and line 18 and line 16 for worksheet and line 19 0n Sch D of 1040.
11 C 3471 appears on Schedule D line 12.
But not on line 5 of the worksheet for Sch D and line 18 and line 16 for worksheet and line 19 0n Sch D of 1040.

Everything else (11A, 11B, 11D, 11E, 14A, 14I) is there.


Last edited by booch221 : 04-13-2015 at 01:06 PM. Reason: clarity


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Old 04-13-2015, 05:03 PM
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Quote:
Originally Posted by booch221 View Post
Thanks for your reply.
I don't have enough deductions to itemize. Even with this $849 it will still be better for me to take the standard deduction.

I was able to upgrade TurboTax Home and Business for FREE.
I went to the section on Schedule K-1 and went through the Q&A.
TT generated a 1040X Amended Return. I ended up paying less tax than before.

TT filled in all the boxes on the forms and worksheets as you described, except for this:


11 C 3471 appears on Schedule D line 12.
But not on line 5 of the worksheet for Sch D and line 18 and line 16 for worksheet and line 19 0n Sch D of 1040.

Everything else (11A, 11B, 11D, 11E, 14A, 14I) is there.
Box 11 C 3471=========>>>>>>you need to it report it on SCh D of 1040 line 12 an dline 5 of the worksheet for Sch D and line 18 and line 16 for worksheet and line 19 0n Sch D of 1040.
11 C 3471 appears on Schedule D line 12.
But not on line 5 of the worksheet for Sch D and line 18 and line 16 for worksheet and line 19 0n Sch D of 1040.=>>> you are correct on Sch D of 1040 line 12. In youfr case, I guess you do not need to fill in lines 18 and 19 as you have no sec 1250 expenses and 28% gain long term capital gains.Basically, you need to report net long term gain /loss from the estate , I mean, sch k1 of 1041, and the amount then is transferred to line 15 and 16. And it is transferred to line 13 of 1040 on your return. UNLESS youhave sec 1250 unrecaptured depreciation/ 28% capital gain, then the net LTCG of $3471 is transferred to qualified dividends and worksheet and is reported to 1040 line44. The net long term capital gain of $3471 is subject to preferential long term capital g ain tax rate, meaning it’d be taxed 0% if your tax bracket is 15% or lower or it’d be taxed at 15% if your marginal tx rate is 25% or higher. BNasically, as you can see, all you need to do is just to plug in all those numbers in each box with code in Sch k1 of 1041 in your software(you must plug code numbers also), then your software’s work for you.K1 data is carried automatically to appropriate lines on your 1040 return. I just showed manual processes to let you know how you report the net long term capital gain of $3471 manually on your paper form Sch D of 1040. As said, do not worry about what forms to fill out and where to enter the numbers from your Sch k1 of 1041.



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