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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4037
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I have 2 forms that I have to file with my income taxes because

Customer Question

I have 2 forms that I have to file with my income taxes because of a family trust. The forms are the K-1 and the 2K1. What do I do with these? I use the short forms for the state of Wisconsin and for the federal govt.
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

Stephen G :

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.

Stephen G :

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.

Stephen G :

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.

Stephen G :

If you can tell me what information is reported on the K-1 & the 2K-1, I can tell you how to proceed.

Stephen G :

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?

Stephen G :

What is the Form Number that you have been filing for your federal return (there's more than one short form).

Stephen G :

Let me know when you return, and we can determine what you need to do.

Stephen G :

Just type anything & I will get an email that you have returned.

Stephen G :

Give me a minute or two in case I am helping someone else.

Customer:

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.

Customer:

The 2k-1 form shows the same amounts

Customer:

I've always done my own taxes on the short forms for both federal and state of WI.

Customer:

The forms are 1040EZ and WI-Z.

Stephen G :

OK, hold on a minute

Stephen G :

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.

Customer:

ok.

Stephen G :

Do you do the returns manually, ie. without using a program?

Customer:

Yes.

Stephen G :

The Capital gain goes on Schedule D on a special line as capital gain from a trust.

Stephen G :

let me check, I think you may have to use a different form now that you have a capital gain.

Customer:

ok.

Stephen G :

I was checking to see if you could file form 1040A instead of 1040EZ, but you can't

Stephen G :

Because of the capital gain from the trust you have to use Form 1040.

Stephen G :

also a Schedule D

Stephen G :

let me get you the line the capital gain goes on the Schedule D

Stephen G :

OK the $3,802 goes on line 12 of the Schedule D

Stephen G :

after a couple of subtotals, that will carry over to page 1

Stephen G :

of the 1040

Stephen G :

However, depending upon your other income, the tax on the capital gain may be anywhere from zero to 15%

Stephen G :

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

Stephen G :

In the lower tax brackets, capital gains are taxed a zero%; which means they are reportable, but they aren't taxed.

Customer:

Are you still there?

Stephen G :

Yes

Stephen G :

Aren't you getting my comments?

Stephen G :

Yes or No?

Customer:

Are you still there?

Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4037
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 6 other Tax Specialists are ready to help you
Expert:  Stephen G. replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

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Expert:  Stephen G. replied 1 year ago.

You weren't getting my comments for some reason so I switched to this format which usually solves the problem.

Can you read what I was writing just above the first time you asked if I was still there?

If so, let me know; if not let me know too & I'll repeat them.

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