When it comes to income from estates, trustees are responsible for issuing Schedule K-1 – “Beneficiary’s Share of Income, Deductions, Credits, etc.” to each beneficiary receiving $600 or more from the trust or estate. Namely, they’re used to report income, losses, deductions, credits, and other distributions received. While these forms might look slightly different from one another, they all have the same purpose. This form is part of the K-1 Form series there are K-1 Forms for partnerships and S corporations as well as for estates.
Then there is the Form 1041, better known as the Schedule K-1, which is issued to beneficiaries that receive income from a trust or estate. There is the Form 1040, which lists everything the IRS needs to know about income, losses, deductions, and other information. There is the Form 1099 series, which reports various types of income and earnings.
Paperwork and forms are part and parcel when it comes to filing taxes.
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