Filing a 1040X to include K-1

Forum|Forum|3 months ago
March 7, 2026
1 reply
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I may have already posted this question so apologies if I did.

I've already filed my 1040 but I may have a capital loss from the sale of a home that was in a Trust. If I do indeed need to file the K-1 in the 1040X what is the simplest way to accomplish this?

Also, it's my understanding that adding the K-1 will automatically populate (in this case a loss) schedule D and I'm limited to $3,000/year to have capital losses offset capital gains.

Finally, I read that the K-1 can only be filed once the Trust is closed. Is this true?

Thank you for the help!

MelindaS1

Level 6

Wait until your federal and state returns are accepted by the authorities before considering an amendment. If you receive a Schedule K-1 in your name with taxable income for any tax year, that must be reported on your individual tax return regardless of the status of the trust. If you receive a K-1 for tax year 2025, that income must be added to your tax return that was already filed.

Whether the Trust issues a distribution of taxable income to you or is issuing its final distribution of taxable income in the closing year will depend on the status of the trust and its tax character; different rules can apply, for example, if the trust is a grantor trust, Subchapter S trust, or some other type. Is there more information you can provide about the trust type and its activities for the year?

Any excess capital losses reported to you above your $3,000/year limited will be carried forward to future tax years; until you report the capital loss carryforward, you will not be able to claim it against future gains. Instructions for filing an amended 1040-X:

What should I know before amending my return?

Here are some things to know before you begin:

Make sure you really need to amend.

Wait until your return has been accepted (or mailed if paper-filing).

Use the same TurboTax account you used to file your original return.

Once you begin your amendment, you'll see your original return. Only make changes to the areas of your return that need amending. The refund calculator will start new at $0 and only reflect the changes in the refund or tax due.

Any changes you make to amend your federal return will automatically be transferred over to your state return.

TurboTax Help - How do I amend my federal tax return for this year?

IRS - Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040

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freddytaxAuthor

Level 5

Thank you, Melinda, I believe I agree with you about filing a 1040X. For the home trust their is no capital gain but rather a capital loss (for commissions, expenses, etc. = ~$50,000) since the house was sold for the FMV = $700,000, sales price = $700,000.

Both my wife and I are retired and we only made ~$100,000 in 2025 in IRA RMD, interest, dividends and my wife's SSA. The only taxes we paid during the year were $300 on the IRA RMD. TT said we owed no taxes and actually had a $222 refund. So I don't know if it's worth the trouble to file a 1040X since the capital loss wouldn't do us much good. It would nearly zero out qualified dividends. Does that sound right to you?

freddytaxAuthor

Level 5

Whether a K-1 is generated out of the trust 1041 will depend on the type of trust and activity for the year (such as distributions to beneficiaries), you'll have to email/call the trust accountant about your specifics. If you are set to receive a K-1 from the trust, they will send it to you, and you would need to report it.

You don't have to worry about Form 1041, that is reported at the trust level and the K-1 is sent out of that level down to you (and your wife) at the recipient/beneficiary level for tax reporting (if it is a K-1 year).

These are the instructions for selecting an amended return in TurboTax Online or TurboTax Desktop, but I recommend waiting until you know for sure what the trust is going to send to you this year from its tax reporting.

Thanks, Melinda!!