Estate Income Tax Schedule K-1

[MW-24]

I filed Estate Income Tax (2022 tax year) which was the initial filing. There were six beneficiaries and they all received Schedule K-1's. Five of of the beneficiaries have received their complete and total benefit. Now I am preparing the final 1041 for 2023. The sixth beneficiary received the remaining residual in the Estate account in 2023, which was exactly how the Will was specified, and then the account was closed. The other five beneficiaries received nothing in 2023 because they were fully paid in 2022. So, since TurboTax transferred all the information from the prior year. it created six K-1's. even though only the last/sixth beneficiary received any funds. Should I go back into the program and delete the first five beneficiaries, or am I required to distribute K-1's with a zero amount to those five people only because they are a part of the initial 2022 1041 filing?

[Anonymous_ · Accepted solution]

You do not need to create or issue K-1s to those beneficiaries who are not affected by any distribution of income, gain, credit, deductions, loss, etc.

In this instance, those K-1s can be deleted.

[MW-24]

Thank You!