Schedule K-1 Question

[jmallard]

Hi,

I have a client who receives income from a Trust located in Texas and client receives a completed Form 1041 to file and a Schedule K-1 from a CPA firm. I am in California.

Included in the paperwork my client received was a 2008 Consolidated 1099 Statement from Edward Jones (EJ). The EJ statement has entries for Total Ordinary Dividends - Qualified Dividends and Total Capital Gain Distr. The Recipient's Identification Number on the Statement is the same as on the Schedule K-1.

These figures are not the exact same as those on the Schedule K-1, but close. My question is which one do I use to report on my clients tax return ? Or (God forbid) I don't have to combine those amounts do I?

Thanks in advance for any advise.

Jerry

[Terry D EA]

Hey Jerry,

I think I would contact the CPA or have your client contact them to verify the numbers for the ordinary dividends and qualified dividends as they should match unless there is another 1099-DIV that isn't included in your paperwork. Another possibility is your client may not be the only beneficiary of the trust but may have the highest percentage. These are just a couple of thoughts as to why those figures may not match exactly. To answer your second question, NO, you do not have to combine those figures. Enter them in the 1040K-1 worksheet in the appropriate boxes. Hope this helps.

Terry D.

[Maribeth]

Hi,

I have a client who receives income from a Trust located in Texas and client receives a completed Form 1041 to file and a Schedule K-1 from a CPA firm. I am in California.

Included in the paperwork my client received was a 2008 Consolidated 1099 Statement from Edward Jones (EJ). The EJ statement has entries for Total Ordinary Dividends - Qualified Dividends and Total Capital Gain Distr. The Recipient's Identification Number on the Statement is the same as on the Schedule K-1.

These figures are not the exact same as those on the Schedule K-1, but close. My question is which one do I use to report on my clients tax return ? Or (God forbid) I don't have to combine those amounts do I?

Thanks in advance for any advise.

Jerry

The K-1 has the correct amounts to report. They have been adjusted for any deductions that the trust has so the amounts from the K-1 should be lower than the amounts on the Edward Jones statement.

Maribeth

[Terry D EA]

Jerry, follow Maribeth on this one. I don't know what I was thinking when I posted my response, a good excuse is too early and no coffee yet or food for the brain. Anyway, she is right on the money.

Terry D.

[grandmabee]

The K-1 has the correct amounts to report. They have been adjusted for any deductions that the trust has so the amounts from the K-1 should be lower than the amounts on the Edward Jones statement.

Maribeth

WHy wouldn't the trust ID number be on the 1099 div? it should not be his.

Also do you know what TOD stands for on ownership of an account?

[Lion EA]

Transfer On Death