An estate or trust required to file Form 1041 might pass certain items of income and deductions to its beneficiaries. So, if you’re a beneficiary, you must pay tax on your share of income. However, you can also claim credits and deductions on that income.
The estate or trust will send you a Schedule K-1 showing what you must report on your return. The K-1 can include:
- Investment income, like interest, dividends, and capital gains
- Passive income, like rental income
- Deductions to reduce your taxable income
- Credits to reduce your tax
How you report the income depends upon the type of income you’re reporting.
Did you receive a W-2 correction after filing your taxes? Learn more from the tax experts at H&R Block.
IRS Form 9465, Installment Agreement Request, is used to request a monthly payment plan with the IRS. Learn more from the tax experts at H&R Block.
IRS notices can be confusing or even incorrect. Your best bet is to try to avoid the notice in the first place. Get the facts from the experts at H&R Block.
How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.