K1 for 1041 - Tax Year Question

[Lynn90275]

Hi There,

I have received 2021-1099R for an estate whose probate has been approved for distribution in Feb 2022. The estate fiscal year is May 2021-April 2022 which I hope to file the first and final return. TT does not have Business version for Mac so I can't file 1041 using TT. 

1. Should the tax year for 1041 - 2021 or 2022? 

2. I believe I can use the 65day rule to put Feb 2022 distribution as 2021. But on my personal 2021-1040, when I try to record K1, TT said that the K1 for fiscal May 2021-April 202 is to be recorded as 2022 tax year. Am I then to report K1 as a beneficiary under 2022 1040 tax return? Hence delay paying 2021-1099 for another year till 2022.

Thank you in advance for your guidance.

[Anonymous_]

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@Lynn90275 wrote:

1. Should the tax year for 1041 - 2021 or 2022? 

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2022 since the fiscal year ends in April of 2022.

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@Lynn90275 wrote:

Am I then to report K1 as a beneficiary under 2022 1040 tax return? 

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Yes, you would report the K-1 on your 2022 federal income tax return (1040), consistent with the year ending listed on your K-1.

[Lynn90275]

@Anonymous_   Thank you so much for your response. 2022 is actually better for me.

However, I saw a link to 1041 Instruction. My interpretation of the period covered is that I am to use 2021 return.

https://www.irs.gov/instructions/i1041

Period Covered

File the 2021 return for calendar year 2021 and fiscal years beginning in 2021 and ending in 2022. If the return is for a fiscal year or a short tax year (less than 12 months), fill in the tax year space at the top of the form.

What/where did I miss or misinterpret? TIA

[Anonymous_]

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@Lynn90275 wrote:

@Anonymous_   Thank you so much for your response. 2022 is actually better for me.

However, I saw a link to 1041 Instruction. My interpretation of the period covered is that I am to use 2021 return.

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@Lynn90275 

Yes, you will use IRS Form 1041 for 2021 (i.e., the 2021 edition of Form 1041) for the estate income tax return.

However, since the fiscal year ends in 2022, you (and any other beneficiaries receiving a K-1) will enter the information from your K-1 into your 2022 individual income tax return (Form 1040).

[Lynn90275]

@Anonymous_  Thank you so much.