KF: Beneficiary's Share of Minnesota Taxable Income (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule KF reports a beneficiary’s share of income adjustments, credits, and Minnesota-source income from an estate or trust. It also reports Minnesota composite income tax paid by the fiduciary for electing nonresident beneficiaries.
Who files this form
The fiduciary must complete and provide 2024 Schedule KF to:
- Each estate, trust, or nonresident individual beneficiary with Minnesota source income.
- Any Minnesota beneficiary who has income adjustments or credits.
Beneficiaries use Schedule KF to complete Form M1, Minnesota Individual Income Tax Return, or Form M2, Income Tax Return for Estates and Trusts. Minnesota resident individuals must report all income from the trust or estate. Other beneficiaries must report income allocable to Minnesota.
A nonresident individual with 2024 Minnesota source gross income of $14,575 or more must file Form M1 unless they elected composite filing or their filing requirement was satisfied through a pass-through entity (PTE) tax filing.
What you'll need
To complete Schedule KF, have the information requested on the form:
- Tax year beginning and ending dates.
- Beneficiary’s name, address, and Social Security number.
- Estate’s or trust’s name, federal ID number, and Minnesota tax ID number.
- Fiduciary’s address.
- The beneficiary’s share of income, adjustments, credits, and applicable Minnesota amounts from federal Schedule K-1 (1041).
For applicable credits, have the requested credit certificate numbers or National Park Service project number. For carryover credits, the form requests the credit name, certificate number, unused credit, and remaining years.
Fiduciaries must enclose Schedule KF and copies of all Schedules KF and federal Schedules K-1 with Form M2. Beneficiaries need their Schedule KF to report the amounts on their Minnesota return.
How to file
Fiduciaries: Complete Schedule KF and provide it to each beneficiary who needs it. Enclose this schedule and copies of all Schedules KF and federal Schedules K-1 with Form M2.
Beneficiaries: Transfer the amounts to the return and schedule lines identified on Schedule KF and in its line instructions. Include Schedule KF when filing Form M1. Estate and trust beneficiaries claiming credits must include Schedule KF with Form M2 as directed in the credit instructions.
The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Forgetting the attachment: Include Schedule KF with Form M1. The credit instructions also require estate and trust beneficiaries to include it with Form M2 when claiming the specified credits.
- Using the wrong beneficiary lines: Calculate lines 1 through 43 the same way for resident and nonresident beneficiaries. Lines 44 through 48 are only for estate, trust, and nonresident individual beneficiaries. Lines 49 and 50 are only for nonresident beneficiaries.
- Not rounding: Round amounts to the nearest whole dollar.
- Reporting amounts excluded from federal income: For lines 44 through 47, include only amounts included in federal income if loss limitations or other restrictions prevented full inclusion.
- Missing credit identifiers: Enter certificate numbers or the NPS project number where required.
Questions people ask
What if I receive an amended Schedule KF?
If your income or deductions changed, you must file an amended Minnesota return. Use Form M1X for an individual return or Form M2X for an estate or trust return.
Do I need Form M1 if the fiduciary paid composite tax for me?
If you elected for the fiduciary to pay composite tax, you are not required to file Form M1. The text also provides this exception when your filing requirement is satisfied through a PTE tax filing.
Can a nonresident with income below the filing threshold get a refund?
If your 2024 Minnesota source gross income is less than $14,575 and you had Minnesota tax withheld, file Form M1 and Schedule M1NR to receive a refund. Withholding is shown on lines 32 and 43 of Schedule KF.
What is the difference between lines 48 and 49?
Line 48 shows Minnesota source gross income, which determines whether a nonresident individual must file a Minnesota return. Gross income is income before business or rental deductions and does not include losses. Line 49 shows Minnesota source distributive income, which is the income ultimately taxed.