I'm just about done filing for this year, when I discovered that my tax software only partially supports K-1 forms - specifically, it doesn't support 1041s (Beneficiary of trust, trust has income that didn't have taxes paid on it). Sigh.

I'd rather not switch software at this point. Is it feasible to add the income in as 'other income' (which will subject it to my usual tax rate), pay what needs paying, and then after that's been accepted file a 1040X to adjust it to the correct amount (it's mostly interest income with a little bit of dividend income in ordinary and qualified, only a few thousand total)? (Submitting the income as normal income will ensure I overpay, rather than underpay, so I end up with a small refund later on rather than owing penalties for late payment.) Or will the return likely be rejected by the IRS for not specifically mentioning the 1041, thus requiring me to file with a different software?


2 Answers 2


I talked this over with a relative who is a CPA, and she said that as long as the numbers end up on the Interest and qual/nonqual dividend lines on the 1040 eventually that it should be okay.

So my fix for the moment is to tell the software I have a 1099-INT and a 1099-DIV from the trust, and enter the information on the appropriate lines from that. (I don’t see a spot where I can enter one form with both interest and dividend, for some reason.)

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    The fact that the trust issued a K-1 and reported it, presumably, will set you up for a potential mis-match. In my opinion, you should use different software, or do it by hand. While you might not owe anything more, or be subject to any penalty, the red flag might cause to to receive an IRS letter. I hate when I get those. Apr 10, 2019 at 1:15

You are filing a simple 1040, but need to report income from a K-1 (a 1041 K-1, to be specific).

Since the trust has to file its own return, the IRS is aware of the K-1 that was issued. I don’t recommend filing a return that report the correct income numbers but doesn’t report correctly. This invites an IRS letter or worse, an audit. I’d use software that can handle this simple form.


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