Amend 2022 adding 1041 k-1 from inherited trust

[Shannerzzzz]

I filed my taxes in 2022 and bust still have the software.  Received a 1041 K-1 late last year, I'm attempting to amend the 2022 return in TurboTax Deluxe, added where the Schedule k-1 is (but its specifically under business, couldn't find anything for 1041 or inheritance) and not turbo tax says I owe Thousands to IRS AND the state.  I have to be missing something.  I thought I only owe on and accrued interest, not the full amount?   Why is the application saying I owe so much?

[Mike9241]

all estate/trust K-1s are entered in the same section regardless of business or inheritance.

before amending you need to show that you received your refund or paid the balance due

payment should be on line 16

refund on line 18

don't know the amount of income reported on k-1 but that will increase your tax liability by an amount depending on what tax bracket the income falls into. For example, if it's $1,000 and you're in the 22% tax bracket you would owe $220. Because of the complex tax laws other results are possible

if you had a balance due for 2022, Turbotax does not assume it was paid so it needs to be entered. 

[Shannerzzzz]

When I start the amendment it starts at 0, not sure where line 16 is you reference.   I did owe and paid it when I filed.   From everything I read I should only own on the 169.00 from interest income.  It looks like when I enter the K1 info it's not account for the - adjustment amount for H.  I have a 74000 on line 5 of the K-1 and then line 14 is 169 (E)  and -74000 (H).   I believe the negative should zero it out so that I only own on the interest, but doesn't seem to be doing that. 

[JotikaT2]

Schedule K-1's for trusts would be reported under the Business Items section in Wages & Income.   You would need to select start to the right of Estates or Trusts (Form 1041) to ensure your Schedule K-1 is reported correctly.

In regards to the amounts reported on your Schedule K-1, while you have the interest income, you also have income from the trust's portfolio or nonbusiness income being reported to you on Line 5.  This amount is causing the higher tax due on your personal return as this is additional income that you need to report based upon the Schedule K-1.  

The amount listed on Line 14 is actually not an offset to your positive income, but is used to determine if you have any net investment income tax that would be reportable on Form 8960.  If your investment income exceeded the threshold based upon your filing status, then you would have been subject to an additional tax on your investment income.  

@Shannerzzzz 

[Shannerzzzz]

OMG Turbo Tax says it's like 18K to the IRS and 5 to state!  I would rather have not gotten it all, I already put it into brokerage accounts, when I didn't get the paperwork after a year.....then of course it came in!   I'm likely going to take this to someone to be sure it's right.....its more than 25% of the trust.    Thanks for trying to explain...but this is just too scary.