2023 Beneficiary's Instructions for Schedule K-1 541-2026

1. Click ‘Get Form’ to open the 2023 Beneficiary's Instructions for Schedule K-1 541 in our editor.
2. Begin by entering the tax year information if it differs from the calendar year. Indicate whether this is a final or amended K-1 in the upper right area of the form.
3. Fill out Column (a) with total Alabama distributable income, including both Alabama sourced and non-sourced income. In Column (b), enter the nonresident beneficiary’s share of non-Alabama source income, making necessary adjustments.
4. In Column (c), calculate and report amounts by subtracting Column (b) from Column (a). This amount is reportable on the Alabama return for both residents and nonresidents.
5. Provide detailed information about the beneficiary, including name, mailing address, social security number, and residency status. Select the appropriate classification for the beneficiary.
6. Complete the estate or trust information section by entering its Federal Employer Identification Number and fiduciary details.
7. For each line item under Beneficiary’s Share of Alabama Current Year Income, ensure accurate reporting on corresponding schedules of Alabama Form 40 or 40NR as specified.

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