Why does Turbotax (Business edition) enter a number in Sch. K-1 (Form 1041) Box 14 with code E?

[2davidc8]

I'm using Turbotax Business edition to file a return for the estate of my mom, who passed away in March 2018.  The income distributed to beneficiaries in 2018 consisted of only interest, dividends and capital gains on sales of stocks and mutual funds. When Turbotax created the Schedules K-1 for the beneficiaries, the amounts in Boxes 1 thru 4a were as expected, but it also entered an amount in Box 14 with code E (Net Investment Income), which as far as I can tell, is just the sum of Boxes 1 and 2a. What is the meaning of this number? Is it informational only? How should the beneficiary handle it?  (The instructions for Sch. K-1 don't say anything about code E.)

[MichaelL1 · Accepted solution]

That amount for Net Investment Income is for high income taxpayers to pay some additional taxes.

It most likely will have no impact on your return.

Form 8960 (Net Investment Income Tax – Individuals, Estates, and Trusts) used for the 3.8% surtax on investment income for the Affordable Care Act. It first appeared in tax year 2013.

If you have income from investments and your modified adjusted gross income (MAGI) exceeds $200,000 for individuals, $250,000 for spouses filing jointly, and $125,000 for spouses filing separately, we'll include Form 8960 with your return.

Click on this link for more detail:  https://www.irs.gov/individuals/net-investment-income-tax