Schedule K-1 (Form 1041)

The fiduciary of a domestic decedent's estate, trust, or bankruptcy estate uses Form 1041 to report this income to the taxpayer:The fiduciary of a domestic decedent's estate, trust, or bankruptcy estate uses Form 1041 to report the estate or trust's income, gains, losses, etc.

Taxpayers receive Form 1041, Schedule K-1 to report their share of income from interest, dividends (ordinary and qualified), and capital gains (net short-term and net long-term). The taxpayer's income from these sources should be reported on the appropriate forms and schedules as listed on Form 1041, Schedule K-1, page 2.

Schedules K-1 are not filed with the tax return. Advise taxpayers to keep Schedules K-1 with their records.