topic Re: Schedule K in Deductions & credits

Schedule K

Takamurarules — Sat, 25 Apr 2026 23:23:10 GMT

Hi, my mother passed away back in 2022. I finally got the estate stuff settled late last year and received the pension she had from a past job as the sole beneficiary (44k). She had no other assets, such as interest income or dividends. Simply non-business income. I received a Schedule K-1 from the tax person I used to settle the estate recently, and I was given advice from a family member to amend my tax return for this year.

I live in North Carolina, and from my knowledge, it was a non-taxable estate when it came to inheritance, but between that and the federal, I owe about 10k when I put in the numbers on Turbo Tax here. Is this correct? And how does it work? Am I even supposed to file it on my tax returns?

Re: Schedule K

M-MTax — Sun, 26 Apr 2026 00:34:35 GMT

@Takamurarules wrote:
Am I even supposed to file it on my tax returns?

Yes, you are supposed to enter the information from the K-1 on your federal (and likely state) income tax return (1040). TurboTax will do the calculations for you.

Re: Schedule K

Takamurarules — Sun, 26 Apr 2026 02:06:40 GMT

So, would I do the amendment for this year as suggested on top of my standard W-2s, or would I wait until next tax season since I just got the 1041? Also, how did I end up owing for the state? That's the part I don't understand since I live in a state where the inheritance isn't taxed. Both the state and federal calculated to where I owe 10k where I didn't even receive over 50k much less in the millions. I thought inheritance wasn't supposed to be taxed under a certain threshold. The money itself wasn't even accruing interest. Also, should the tax have been taken out upon pay out before I even got the money if applicable?

Re: Schedule K

Mike9241 — Sun, 26 Apr 2026 02:07:21 GMT

There can be an estate tax based on the value of the estate. It's paid by the estate, not by the beneficiary inheriting the assets. This tax was not paid because the estate's value was too low. However, what you inherited is deemed income in respect of a decedent (IRD). IRD refers to income that a decedent was entitled to but was not includible in the decedent’s tax return under their accounting method. This includes accrued income, contingent claims, and income that arises solely because of the decedent’s death. The recipient (beneficiary) pays the income taxes on this income IRD includes distributions from IRAs, 401(k)s, or other retirement accounts that were pre-tax or tax-deferred. There is no step-up in basis for IRD items.

your paying a lot of taxes because this income is added to your other income, possibly pushing some of it into a higher tax bracket.

as to the year to report on your tax return, it's the year on the K-1. At the top, it will say something like 202x. For calendar year 202x or tax year beginning xx/xx/xxxx and ending yy/yy/yyyy.

if the beginning and end dates are blank, you report it in the calendar year specified. If not, you report it in year yyyy