Schedule K-1 Beneficiary family Trust

[MJBsbooks]

I have amounts on line 5, and line14 with H code. The line 14 zeros out line 5, there should be no tax as

Trust is paying it.  Is the K-1 incorrect?

[M-MTax]

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@MJBsbooks wrote:

I have amounts on line 5, and line14 with H code. The line 14 zeros out line 5, there should be no tax as

Trust is paying it.  Is the K-1 incorrect?

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No, the K-1 is not incorrect.

The entry on Line 14 (H) is transposed to Form 8960, if needed, and is simply an adjustment to the NIIT. It does not zero-out the income reported on Line 5 for regular income tax purposes.

See https://www.irs.gov/instructions/i8960#en_US_2024_publink10003529

[MJBsbooks]

I should not be taxed but I am.  The Trust is covering. 

[M-MTax]

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@MJBsbooks wrote:

I should not be taxed but I am.  The Trust is covering. 

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Then your K-1 should not be populated with any figures (if you should even be receiving a K-1).

You should contact the trustee or whoever is responsible for preparing the 1041.