Federal Schedule K-1 (Form 1041) and California Schedule K-1 (Form 54) - Non-resident

[ricardo55]

I am a resident of Colorado and this is concerning my father's estate in California. When the 2021 returns were prepared for the estate an over payment of interest on the mortgage was discovered and a "Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc." was prepared and filed with the 2021 Form 1041 for the estate.  I was also provided with a 2021 California Schedule K-1 (Form 541) for my share as a beneficiary that was filed with the California returns for the estate.

What am I supposed to do with this information for my Colorado state returns?  The questions asked in TurboTax are for a Colorado Schedule K-1 and I have a California Schedule K-1.

Thanks

[Anonymous_ · Accepted solution]

You enter the federal K-1 (1041) which should propagate to your Colorado return (if not you will have to make an adjustment).

The California K-1 will be entered on your nonresident California return (if you are required to file one).

[ricardo55]

TurboTax was smart enough to know that I had entered a Federal K-1, but on the Colorado state questionnaire it is asking questions about a Colorado K-1, which I don't have. That where I'm having the issue.

[Anonymous_]

You do not have CO K-1 because the estate was, apparently, a "resident" of CA and therefore required to file a CA return but not a CO return (for the estate).

Since you are a CO resident, the income from the K-1 you entered on the federal side should flow through to your CO return. 

[ricardo55]

I think we're getting there now. I should note that there is no income on the Fed K-1, only expenses (excess deductions, capital loss carryover, and property taxes). It seems like there is no need to file anything on the CO side.