California K-1 (541)

[noskypie7]

I am a Nevada resident and have received a California K-1 for my mother's trust.  I entered the amount from Box 5(d) into my federal return. I downloaded the California tax return and for the K-1 it is showing the same amount from Box (e) on the form in the federal adjusted column.  It is asking for an amount in the California amount coluymn.  Do I enter that same amount again?  

[PatriciaV]

If all income reported on the California Schedule K-1 was sourced in CA, then you would enter the same amount during the CA interview that is reported on the K-1. Be sure it's asking for the California portion and not an adjustment. If it's asking for the CA adjustment amount, you would leave the box blank.

[noskypie7]

The K-1 shows $4541 in Line 5(b), $20 in Line 5(c), $4561 in Line 5(d), and $2507 in Line 5(e).  I put $4561 in my federal return.  When I got to the California return the amount of $2507 was already in the Federal Adjusted box, and it wants me to put an amount in the California adjusted box.  Your reply tells me to also put the $2507 in the California adjusted box.  Is that correct?  Thank you.

[PatriciaV]

Please clarify what type of K-1 you are working with. Is it the federal Form 1041 K-1 or the California Form 541 K-1? There are no boxes for Lines 5(b), (c), (d), or (e) on either of those K-1s. You can post a screenshot using the camera icon if necessary.

[noskypie7]

It is a California Schedule K-1 (541).  I'm not sure how to upload a picture from my phone but if this doesn't help I will try.  Thanks again.

[PatriciaV · Accepted solution]

California Schedule K-1 (Form 541) Line 5 - Other Portfolio and Non-business Income has four columns:

• (b) should be the amount entered from the federal Schedule K-1 (Form 1041).
• (c) would be any adjustments needed to the amount in (b) for California rules.
• (d) is the total of (b) and (c), which could be more or less than the federal amount in (b).
• (e) is the amount of income sourced in California, which is part of the amount in column (d). Per the Instructions for 2025 CA K-1 (541), If you are a nonresident beneficiary, the California source amounts in column (e) will help you identify the California source adjusted gross income that must be reported on your Schedule CA (540NR), column E.

Based on this information, the amount that was automatically populated is the California-sourced income (Line 5(e)). You would not enter any adjustments to that amount. However, confirm that the box is asking for an adjustment and not California Amount.