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user17754280967
Returning Member

MA Schedule 2K-1 (1041) adjustment not flowing to MA return

Hi ... I have a beneficiary 1041 Schedule K-1 which I've entered in the Federal interview.  Dividends and capital gains/losses have flowed to Federal Schedules B and D as expected.   I also have a MA Schedule 2-K1 with only interest & dividend income (Line 8).  Based on other guidance, I've entered the appropriate MA adjustment in the MA Estate/Trust portion of the interview.  This caused TT to generate a MA Schedule E with the appropriate adjustment.  

 

My issue is that the Schedule E result is not flowing into the return to be filed.  I thought I would see it on MA Form 1.  When I generate the filed return for review, MA Schedule E is not included.

 

In case it's significant, the MA estate interview states: You reported income or loss from this estate/trust of $0 on your federal return.  I believe this is correct as all the K-1 dividends/gains have been reported on other forms in the Federal return.

 

Thanks in advance for any guidance.

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2 Replies
MarilynG1
Employee Tax Expert

MA Schedule 2K-1 (1041) adjustment not flowing to MA return

You may need to enter your Massachusetts Schedule 2K-1 adjustment when prompted in the MA state return (often in the Partnerships/S Corps or Trust section) and select the option to adjust the state return based on the 2K-1 differences.  If the MA 2K-1 income is higher, enter a positive difference; if lower, enter a negative difference.

 

However, if the amount is still not flowing properly to MA Schedules B/D and MA Form 1, try entering the adjustment directly in Forms mode.  Schedule E would not be included, even though the amount is reported on Schedules B/D.

 

@user17754280967 

 

 

 

 

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user17754280967
Returning Member

MA Schedule 2K-1 (1041) adjustment not flowing to MA return

Thank you ... just to confirm my understanding ... 

 

Entering the MA adjustment in the Estate portion of the interview did not flow to the filed return.

 

So I've removed that entry, and instead entered the MA Schedule 2K-1 interest/dividend adjustment in the Interest and Dividends portion of the MA interview (Interest and dividends from MA Schedule E) as suggested.  The adjustment now flows to MA Schedule B Line 3 as you've indicated and is included in the tax computation. A separate MA Schedule B Line 3 form is included in the return as you indicated. 

 

Sound reasonable?

 

Thanks again ... much appreciated!

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