You will need to include the K-1 as part of your tax return, entering the information just as it was reported to you. Since there are no income items reported in boxes 1-10, it is not likely to make an impact on your taxes. TurboTax will take the information from the K-1 and report it in the various places in your return as needed.
You are correct, if you inherit cash then it is generally not taxable income. If you had inherited property (such as stocks or a house), then it may be taxable when you sell the property.
In order to include the K-1 as part of your return, you will need to use TurboTax Premier or higher if using TurboTax Online. If you use a CD/downloaded version of TurboTax, then any version of the program will have the capability to handle the K-1. The Premier or higher version will give you the most onscreen guidance and information. As for discussing this with an accountant, TurboTax does offer a couple of options for that if you are interested -- TurboTax Live and TurboTax Live Full Service. See the following help article for more information: What is TurboTax Live?
Ultimately, the K-1 is probably a simple issue that won't really affect your return. However, it does need to be handled by including the details as part of your return and not simply attaching a copy to send to the IRS.
When you are working through your tax return, use the following steps to go to the section to enter your K-1 information:
- On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
- This opens a box where you can type in “K-1” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will give you an option to “Jump to K-1”
- Click on the blue “Jump to K-1” link and enter your information
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