The term "beneficiary level" in the context of your 1041 K-1 refers to income that is allocated to you as a beneficiary of the trust or estate. Essentially, it means the portion of income that is distributed to you, rather than retained by the trust or estate.
Here’s a breakdown of the three categories:
- Gross Income Sourced at the Beneficiary Level: This is the total income allocated to you, regardless of whether it's from U.S. or foreign sources.
- Gross Income Sourced at the Beneficiary Level, U.S. Source: This refers to the portion of the income distributed to you that originates from U.S. sources.
- Gross Income Sourced at the Beneficiary Level, Foreign Source: This is the portion of the income distributed to you that originates from foreign sources.
Since your 1099 provides the details of foreign income, you can use that to determine the foreign source portion. For the U.S. source portion, you would need to identify income that is not foreign—this could include dividends, interest, or other income from U.S.-based entities.
Your K-1 and 1099's come with supplementary disclosure forms. Look through these forms because they may have important information about income sources at the beneficiary level to report on your return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
