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Help me understand my schedule K-1 1040 please?


My father recently passed away and left my inheritence in a trust account for myself and brother. I recently recieved a schedule K-1 from the trust company, but I do not understand it. I have amounts in boxes 1,2a,2b,5, and 3 items in box 14, two of the ones in 14 I understand but the third is net investment income. My question is do I claim all the amounts or just the ones in 1,2a,2b, and 5. I took my information to Sharp income tax services and they said I owed a whole lot of money in taxes which did not seem right. I am currently looking for an accountant to do my taxes for me but I am really worried about having to pay thousands of dollars in taxes so I thought I would see if anyone would maybe be able to answer on here to maybe ease my mind. Thank You so much!

You would be taxed on the income from lines 1, 2a and 5. The net investment income amount in box 14 is already included in boxes 1, 2a and 5. Don't add this amount to income.

You don't tell us how much income you have in the boxes so there is no way for us to be able to tell you if you owe thousands or pennies. Those boxes on the K-1 include all income as well as deductions from the trust. If you go to an accountant, they will most likely have some kind of software that allows you to just input the numbers and they will be carried to the correct lines of your form 1040. Either way, if you owe thousands in income taxes, that means you had even more thousands of income so you should be able to pay the taxes!

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