Question

Estates and trusts must file tax returns. Instead of Form 1040, U.S. Individual Income Tax Return, estates and trusts file Form 1041, U.S. Income Tax Return for Estates and Trusts. Which schedule should be provided to each beneficiary?
Schedule E (Form 1040).
Schedule K-1 (Form 1041).
Schedule K-1 (Form 1065).
Schedule K-1 (Form 1120-S).

Answer 1

Schedule K-1 (Form 1041).

This K-1 reports each beneficiary’s share of the estate or trust’s income, deductions, and credits (Schedule E, Form 1040 is for reporting rental/royalty/pass-through income on individual returns; K-1 (1065) is for partnerships; K-1 (1120-S) is for S corporations).