What do I do with this K-1 Inheritance form?

[sdirien]

A great grandmother in New Jersey passed a few years ago and after a lot of accounting stuff (I'm not close to that side of my family, so I don't really know why the estate took three years to settle) I received my portion of the inheritance a few months ago. I supposedly have a K-1 coming but I don't know where to put this information, or how. All I know is that inheritance tax is a thing in New Jersey, so I have to report it. Where do I enter this information? Inheritance tax is a state thing, but when I was using TurboTax I could only find a place to enter K-1 details under federal. 

[GiseleD · Accepted solution]

I'm sorry for the loss of your great-grandmother.

When you receive your K-1, you will enter it into the federal portion of your return, and TurboTax will automatically transfer it to your state. When your receive your K-1, visit the instructions here, or read below: 

For TurboTax Online

1. Open or continue your return.
2. Search for K-1 and select the Jump to link in the search results.
3. This will take you to the Schedules K-1 or Q screen.
4. Answer Yes and follow the prompts. You may be prompted to upgrade to Premier, if you're not already using it.
5. We’ll ask some questions about your K-1, and then you’ll enter the data from the form.

[cornyb4]

I received an inheritance, entered the K-1 under the K-1 estate side.  I felt like when I finished it increased by federal taxes due.  Do you think this was correct, or did I not see this correctly.  Is it correct, that no federal taxes would be owed for receiving an inheritance.

Thanks

[PattiF]

A K-1 from an estate can include income that is taxable such as dividends, capital gains, business income, and more. The K-1 that you entered reported income that increased your federal taxes due. It is not correct that no federal taxes would be owed for receiving an inheritance that was reported on a K-1.

@cornyb4 

[cornyb4]

Thanks for the response. I finished generating the K-1's and those did not have taxable income for the beneficiary.   Yes, I see your correct that if the estate made money and then it was sent to a beneficiary, then there would be additional taxable income.