topic Re: Reporting taxes due using a K-1 in Business & farm

Reporting taxes due using a K-1

greenCap — Mon, 04 Jan 2021 23:38:48 GMT

When a trust makes a distribution and generates a K-1, the beneficiary may have several different kinds of income reported on the K-1. For entering that info on their 1040 form, do they need any schedules?
Is it easy, for instance using the TurboTax free edition for simple taxes?
My usual simple tax software site says they "Don't support K-1s", but I suspect they don't understand my question, and think I'm asking them to generate a K-1.

Re: Reporting taxes due using a K-1

ee-ea — Tue, 05 Jan 2021 00:28:01 GMT

FREE Covers W-2 income, unemployment income, Earned Income Tax Credit (EIC) and child tax credits only.

You have to up grade.

Re: Reporting taxes due using a K-1

greenCap — Tue, 05 Jan 2021 12:38:45 GMT

Thanks,

I wonder where I can see that spelled out, including which one to upgrade to, and what all it covers.

Re: Reporting taxes due using a K-1

Critter-3 — Tue, 05 Jan 2021 13:01:49 GMT

Ok ... if you use the ONLINE version you will need the Premier version. https://turbotax.intuit.com/personal-taxes/online/

If you use the DOWNLOADED/CD version then you can use ANY version ... if you don't need to file a state return choose Basic and if you do need a state then Deluxe. https://turbotax.intuit.com/personal-taxes/cd-download/

You can also purchase the CD/download from various retailers such as Costco, Amazon, Walmart, Best Buy, Staples, Sam’s Club, etc. etc. etc.

This link Where can I obtain authentic TurboTax software? has a list of authorized TurboTax resellers.

<<<<< OR >>>>>

If you qualify AND if you wait until mid January THEN you can use one of the 10 IRS FREE FILE options to file a fed & state return for free ... but you must be patient. https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

IRS Free File: Closed until January 2021

IRS Free File is closed for the 2020 tax season. Check back in January for Filing Season 2021 opening details.

For Filing Season 2021, you must make $72,000 or below to use one of the 10 IRS Free File partner offers.

Re: Reporting taxes due using a K-1

greenCap — Tue, 05 Jan 2021 14:19:46 GMT

Thanks,

That is a ton of info. But I am still missing a basic understanding of what the difference is between an allowable tax platform (if I get a distribution and a K-1) and a not allowable one (one that 'does not support'). On one of the posts I scanned on google it said the allowable ones have schedules B and E. Is that the right distinction?

Re: Reporting taxes due using a K-1

Critter-3 — Tue, 05 Jan 2021 14:49:59 GMT

The K-1 issued to you is what they call a "consolidated statement" and the info on it that needs to be dispersed to the proper places on a personal return so you must have a program suited to the task. The K-1 may have dividends, interest and/or capital gains which may need a Sch B or D, or ordinary income/rent to a Sch E and so forth.

For the Online it means the Premier, for the downloaded any will work and if you meet the AGI requirement then one of the IRS free file options may be a good choice.