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Subject:  Re: State Tax Liability-Form 1041 K-1 Date:  12/13/2012  12:51 AM
Author:  vkg Number:  117128 of 127987

I wonder if the beneficiaries in states outside that of the estate just use the information to roll data into their own state income tax return. Or do the beneficiaries in states outside that of the estate have to file a non resident state income tax return for the estate's domiciled state.

I went through this last year. The system that has the files is dead. Before completing the final return for the estate this year, the files will need to be extracted from the backup.

I believe that the state K-1's are filed in the estate's state, and out of state beneficiaries have to deal with their state taxes on tax exempt interest. Doesn't box 14 of the federal K-1 have codes for tax exempt interest and net investment income?
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