Need help deciphering Form K-1 (1041) from relative's estate - TurboTax confusion

Thanks for explaining the STMT notation - that makes more sense. But I still can't find any option in TurboTax for entering multiple entries. It just has a single box for each letter/number from the K-1. Am I missing something obvious? Do I need to add up all the values from the statement myself?

You don't need to add up the values yourself. In TurboTax, when you're entering the K-1 information, look for a small link or button that says something like "Enter Statement" or "Multiple Values" near the input field. It's often easy to miss but should be there. If you can't find it, try clicking on the help icon or question mark near that field, which might explain how to handle statement entries. The premium editions do make this easier by providing better guidance through complex forms like K-1s from estates.

Does taxr.ai actually work with forms that have statements attached? My K-1 has like 3 different statements and my tax software keeps rejecting my entries.

I'm skeptical about these online tools. How does it handle complex distributions that span multiple tax categories? Estate K-1s often have income that falls under different tax treatment.

Yes, it handles multi-page statements really well! You just upload both the K-1 and any attached statements, and it analyzes them together to give you the complete picture of what each entry means and where it goes. For complex distributions across different tax categories, that's actually where it shines. It breaks down each category separately and explains the tax treatment for each type of income or distribution. It saved me when dealing with an estate that had everything from rental income to capital gains to ordinary dividends all on one K-1.

How does this actually work? Do they have special access to the IRS or something? Seems too good to be true considering how impossible it is to reach anyone there.

This sounds like complete BS. The IRS won't help with software questions or tell you how to enter information in TurboTax. They'll just direct you to the form instructions which are already confusing.

It's actually pretty straightforward - they use an automated system to wait in the phone queue for you. No special access, just technology that handles the wait time so you don't have to. When an IRS agent picks up, their system calls your phone and connects you directly. The IRS won't help with TurboTax specifically, you're right about that. But they will clarify what the different entries on a K-1 statement mean and how they should be reported on your tax return. I asked specific questions about how to handle distributed income from an estate that had multiple income types listed on a statement, and they explained which lines on Form 1040 each type of income should be reported on.

Is it really worth switching tax software at this point? I'm halfway through my return in TurboTax and have a similar K-1 issue. Will H&R Block let me import what I've already done or would I have to start over?

Unfortunately, you'd likely need to start over if you switch software at this point. The import functions between competing tax products aren't great and often miss details. If you're already halfway through your return in TurboTax, your best option is probably to upgrade to their live help version rather than switching entirely. The TurboTax live tax pros can walk you through entering the statement items correctly, and that would be less frustrating than starting over in a new system. Just make sure you specifically ask about entering K-1 statement items, as some of the more general support people might not be familiar with the nuances.

You report K-1 income in the tax year shown on the K-1 itself, not when you physically received the form. If the K-1 says "2023" at the top, it goes on your 2023 return, even if you received it recently in 2024. Estates can take time to process, which is why K-1s often arrive late. If the K-1 is for 2023 and you've already filed your 2023 return, you'll need to file an amended return to include this information.