turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Form 1041 K-1 - are these forms necessary if there is no tax due?

I am filing the taxes for my dad's estate.  His will designated 50% of his estate to go to specific charities, and the remainder to go to family. The will also designated that all taxes be paid for from the estate.

There was interest and capital gains received by the estate for 2020.  I also paid out the majority of the charitable contributions designated by the will.  These contributions offset the interest and capital gains, so the tax due is zero.  Do I need to fill out K-1 schedules when there is no income distribution deduction being taken on the 1041?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

5 Replies
M-MTax
Level 12

Form 1041 K-1 - are these forms necessary if there is no tax due?

K-1 are not needed if there were no distributions of income to beneficiaries.

JeffreyR77
Expert Alumni

Form 1041 K-1 - are these forms necessary if there is no tax due?

You indicated the remainder of the estate would go to the family,  If there were any distributions to individuals you would issue K1s to the individuals.

M-MTax
Level 12

Form 1041 K-1 - are these forms necessary if there is no tax due?

Distributions of only assets of the estate don't need to be reported on K-1s.

Form 1041 K-1 - are these forms necessary if there is no tax due?

Here is what I'm thinking, please correct me if it sounds wrong.

Nothing will be retained in the estate once all the taxes are settled.  It will all be distributed in 2020 and 2021.  In 2020 there were distributions to the charities listed in the will, as well as distributions to family.  The distributions to charities greatly exceed the amount of income and capital gains earned by the estate before the investments were sold.  So can I take those as a charitable deduction, reducing the taxable income to zero? And then consider the distributions to family as coming from the assets?  

M-MTax
Level 12

Form 1041 K-1 - are these forms necessary if there is no tax due?

Yes you can IF the charitable contributions were provided for in the will and the deduction reduced the taxable income to $0.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question