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If you received a Schedule K-1 tax form, inheritance tax rules determine how much tax you’ll owe.

But you would want to keep a copy of your Schedule K-1 on hand in case there are any questions raised later about the accuracy of income, deductions or credits being reported. The fiduciary will send a copy to the IRS on your behalf. That is, unless backup withholding is present in Box 13, Code B. You wouldn’t, however, have to include a copy of this form when you file your tax return. This will allow you to report any income, deductions or credits associated with the inheritance of the assets. If you receive a completed Schedule K-1 (Form 1041) you can then use it to complete your Form 1040 Individual Tax Return. The third part covers the beneficiary’s share of current year income, deductions and credits. Part two includes the beneficiary’s name and address, along with a designation as a domestic or foreign resident. Part one records information about the estate or trust, including its name, employer identification number and the name and address of the fiduciary in charge of handling the disposition of the estate. The form itself is fairly simple, consisting of a single page with three parts. Contents of Schedule K-1 Tax Form Inheritance Statements And that’s regardless of how much or how little income you report.

On the other hand, this form has to be filed if the beneficiary is a nonresident alien. If the annual gross income from the estate is less than $600, then the estate isn’t required to file Schedule K-1 tax forms for beneficiaries.

Whether it’s necessary to do so or not depends on the amount of income the estate generates and the residency status of the estate’s beneficiaries. For example, if a trust holds income-producing assets such as real estate, then it may be necessary for the trustee to file Schedule K-1 for each listed beneficiary.

This form is required when an estate or trust is passing tax obligations on to one or more beneficiaries. And if you’re a beneficiary, you also have to receive a copy of this form. It’s full name is “Beneficiary’s Share of Income, Deductions, Credits, etc.” The estate or trust is responsible for filing Schedule K-1 for each listed beneficiary with the IRS. Schedule K-1 (Form 1041) is an official IRS form that’s used to report a beneficiary’s share of income, deductions and credits from an estate or trust.