Schedule 2k-1 - Beneficiary'S Instructions For Reporting Income, Deductions printable pdf download

BENEFICIARY’S INSTRUCTIONS FOR REPORTING

INCOME, DEDUCTIONS, ETC., FROM SCHEDULE 2K-1

Purpose of Schedule 2K-1

adjusted gross income by filling in the amount from Schedule

2K-1, column c on Form 1, lines 2 through 4 or lines 6 through

Similar to federal Schedule K-1, a trust or estate uses Schedule

11, as appropriate, or Form 2, Schedule A.

2K-1 to report to you your share of the trust's or estate’s income,

deductions, etc. Lines 1 through 14 coincide with lines 1 through

• If you are filing Form 1NPR, include in column B on the

14 of the federal Schedule K-1. Please keep it for your records.

appropriate line of Form 1NPR, along with any other Wiscon-

sin income or loss, the Wisconsin amount (column d) of any

Although an estate or trust is subject to income tax, you are liable

share item on lines 1, 2, 5, and 6 that is allowable in computing

for tax on your share of its income. However, there is never a

Wisconsin adjusted gross income.

double tax. If an estate or trust must distribute currently all of its

income, you must report your share of the income distributed

• Fill in the Wisconsin amount (column d) of the share items

whether or not you have actually received it. If the fiduciary of

from lines 3 and 4 on the appropriate lines of Schedule WD,

an estate or trust has the choice of whether to distribute all or a

Form 1, or Schedule WD, Form 2. The amount from line 3,

part of the current income, you must report all income that is

column d, should be filled in on line 3 of Schedule WD, Form 1

required to be distributed to you, whether or not it is actually

or Form 2. The amount from line 4, column d, should be filled

distributed, plus all other amounts actually paid or credited to

in on line 10 of Schedule WD, Form 1, or line 9 of Schedule WD,

you, to the extent of your share of distributable net income.

Form 2.

Lines 7 through 9 and Line 12 – The entries on these lines show

General Information

the federal amount, adjustment, and Wisconsin amount of dis-

tributive share items relating to the alternative minimum tax and

Inconsistent Treatment of Items – Generally, you must report

tax preference items. If the Wisconsin amount of any share item

items shown on your Schedule 2K-1 (and any attached sched-

differs from the federal amount, you must account for the differ-

ules) consistently with the way the trust or estate treated the

ence on Wisconsin Schedule MT. Fill in the amount of the

items on its return. If your treatment is (or may be) inconsistent

adjustment for minimum tax purposes from line 9, column c and

with the estate or trust, attach a statement to your return explain-

tax preference items from line 12, column c on line 8 of

ing the inconsistency and your reason for such inconsistency.

Schedule MT.

Errors – If you believe the estate or trust has made an error on

Line 13 – If the Wisconsin amount of excess deductions on

your Schedule 2K-1, notify the estate or trust and ask for a

termination on line 13a differs from the federal amount, adjust the

corrected Schedule 2K-1. Do not change any items on your copy.

deduction items from Schedule A when computing the Wiscon-

Be sure that the estate or trust sends a copy of the corrected

sin itemized deduction credit (Form 1, Schedule 1, or Form 1NPR,

Schedule 2K-1 to the Wisconsin Department of Revenue.

Schedule 2). Increase or decrease, as appropriate, the amount

from federal Schedule A by the amount on Schedule 2K-1,

Specific Instructions

column c.

Any short-term capital loss carryover amount from column d of

Name, Address, and Identifying Number – Your name, address,

line 13b should be entered on line 3 of Schedule WD, Form 1, or

and identifying number as well as the estate's or trust’s name and

Schedule WD, Form 2. Any long-term capital loss carryover

identifying number and the fiduciary’s name and address should

amount from column d of line 13c should be entered on line 10 of

be filled in.

Schedule WD, Form 1, or line 9 of Schedule WD, Form 2.

Lines 1 through 6 – The entries on these lines show the federal

amount, adjustment, and Wisconsin amount of any distributive

Line 14a – Wisconsin does not allow estates or trusts to transfer

share items. Generally, you should have reported the federal

estimated tax payments to the beneficiary.

amount on your federal income tax return. However, if the federal

amount was computed using a provision of federal law that

Line 14b – If you are filing Form 1 or Form 2, fill in the Wisconsin

amount of tax-exempt interest (state and municipal interest) from

Wisconsin doesn’t follow, the federal amount shown in column

column d of line 14b on line 2 of Form 1 or Schedule A of Form 2.

b will be the amount computed under federal law that applies for

If you are filing Form 1NPR, include the Wisconsin amount of

Wisconsin tax purposes. The estate or trust will identify these

tax-exempt interest (state and municipal interest) from column d

amounts on line 14c as “Schedule I adjustments.” If you have

a Schedule I adjustment, you must complete Wisconsin

of line 14b on line 2, column B of Form 1NPR.

Schedule I before filling in your Wisconsin income tax return.

Line 15 – These credits apply to Wisconsin only.

If the Wisconsin amount of any share item on lines 1 through 6

Development Zone Credits (lines 15a-15f) – Enter these tax

differs from the federal amount, you must account for this

credits on your Wisconsin Schedule DC.

difference on your individual, trust, or estate income tax return.

How you account for the difference depends on the share item

Historic Rehabilitation Credit (line 15g) – See the “Special

and whether you are filing a Form 1 (Wisconsin residents),

Instructions” in your Wisconsin income tax booklet (Form 1 or

Form 1NPR (Wisconsin part-year residents or nonresidents), or

Form 2 (trust or estate).

1NPR) to determine where you should enter this credit.

• If you are filing Form 1 or Form 2, account for any difference

Manufacturer's Sales Tax Credit (line 15h) – Enter this tax

between the Wisconsin and federal amount of a share item on

credit on your Wisconsin Schedule MS.

lines 1, 2, 5, and 6 that is allowable in computing Wisconsin

Schedule 2k-1 - Beneficiary'S Instructions For Reporting Income, Deductions

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