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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3793
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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I received $40570 from being the beneficiary of an estate.

Customer Question

I received $40570 from being the beneficiary of an estate. US Savings Bonds were cashed in and the $40,570 showed up in box1 on schedule K-1. The tax program I am using shows that I owe self-employment tax on this amount. Can that be correct??
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.Box 1 of a 1041 Schedule K-1 shows interest income and it should not be subject to self-employment tax.What tax program are you using?You may want to try deleting the K-1 in its entirety and re-entering the information.Do you have any other income that would be subject to self-employment tax?Let me know.Thank you and best regards,Barb
Expert:  Barbara replied 1 year ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you further.Best regards,Barb