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.
While you are in an IRS installment agreement, you will receive a CP289 yearly. Learn more about notice CP289 from the tax experts at H&R Block.
Learn about the IRS payment option called a streamlined installment agreement. Read the IRS definition and get more insight from H&R Block.
Get the facts from H&R Block about the IRS Collection Appeals Program (CAP), which is available for many IRS collection actions, including liens and levies.
Learn how the tax reform bill under President Trump, the Tax Cuts and Jobs Act (TCJA), affects you. Find information on brackets, deductions and other changes.