Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything that is not clear.
First of all, the K-1 (for your Federal return) & the 2K-1 (for your Wisconsin return) don't actually get filed with your tax returns.
Rather, what you do is to take the information reported to you on those forms and include it on your tax returns. Whether or not you will be able to continue to file the "short forms" for your returns, will depend upon what is on those forms.
If you can tell me what information is reported on the K-1 & the 2K-1, I can tell you how to proceed.
How do you complete your tax returns now; do you do them by hand or do you use one of the software programs available on the internet?
What is the Form Number that you have been filing for your federal return (there's more than one short form).
Let me know when you return, and we can determine what you need to do.
Just type anything & I will get an email that you have returned.
Give me a minute or two in case I am helping someone else.
The K-1 form shows interest income of $231.00 and Net long term capital gains of $3802.00 I am a beneficiary of our family trust.
The 2k-1 form shows the same amounts
I've always done my own taxes on the short forms for both federal and state of WI.
The forms are 1040EZ and WI-Z.
OK, hold on a minute
OK, well you are going to have to enter the interest income just like you would if you were entering interest from your own savings account.
Do you do the returns manually, ie. without using a program?
The Capital gain goes on Schedule D on a special line as capital gain from a trust.
let me check, I think you may have to use a different form now that you have a capital gain.
I was checking to see if you could file form 1040A instead of 1040EZ, but you can't
Because of the capital gain from the trust you have to use Form 1040.
also a Schedule D
let me get you the line the capital gain goes on the Schedule D
OK the $3,802 goes on line 12 of the Schedule D
after a couple of subtotals, that will carry over to page 1
of the 1040
However, depending upon your other income, the tax on the capital gain may be anywhere from zero to 15%
So you want to watch out for the way you compute your income tax for 2012, you won't just be able to take it off a chart; you'll need to follow the line by line instructions carefully
In the lower tax brackets, capital gains are taxed a zero%; which means they are reportable, but they aren't taxed.
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