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Level 2
March 14, 2025
Question

Should K-1 from a trust showing interest income of x with cat 14, code A showing tax exempt interest of y shows taxable interest of x or x-y on 1040?

  • March 14, 2025
  • 2 replies
  • 28 views
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    2 replies

    Mike9241
    Level 15
    Level 15
    March 14, 2025

    line 1 of the k-1 should only be fully taxable interest for US income tax purposes. This carries to 1040 Schedule B The total of interest income then flows to 1040 line 2b

    line 14a is only for tax-exempt interest. This  shown on 10440 line 2a

     

     

     

     

    Mike9241
    dtrauschtAuthor
    Level 2
    March 14, 2025

    Thanks, that helps