KF: Beneficiary’s Share of Minnesota Taxable Income (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule KF reports a beneficiary’s share of income adjustments, credits, and Minnesota source income from an estate or trust. It also reports Minnesota withholding and composite income tax paid by the fiduciary for electing nonresident beneficiaries.
Who files this form
The fiduciary must complete and provide Schedule KF to:
- Each estate, trust, or nonresident individual beneficiary with Minnesota source income.
- Any Minnesota beneficiary who has adjustments to income or credits.
Individual beneficiaries who are Minnesota residents must report all income from the estate or trust. Other beneficiaries must report income allocable to Minnesota.
For tax year 2025, a nonresident individual with Minnesota source gross income of $14,950 or more must file Form M1 and Schedule M1NR unless they elected composite filing or their filing requirement was satisfied through a pass-through entity (PTE) tax filing.
If your 2025 Minnesota source gross income is below $14,950 and Minnesota tax was withheld, file Form M1 and Schedule M1NR to receive a refund.
What you'll need
- Schedule KF from the fiduciary: Beneficiaries use it to complete Form M1 or Form M2.
- Identification information: The form asks for the beneficiary’s name, address, and Social Security number; the estate’s or trust’s name, federal ID number, and Minnesota tax ID number; and the fiduciary’s address.
- Federal Schedules K-1 and Schedules KF: The fiduciary must enclose copies of all of these schedules with Form M2.
- Credit information, if applicable: Have the certificate numbers requested for your credits and the National Park Service project number for the historic structure rehabilitation credit. For carryover credits, the form asks for the credit name, certificate number, unused credit, and remaining years.
- Nonresident schedules, if applicable: Individual beneficiaries use lines 45–48 to complete Schedule M1NR. Estate and trust beneficiaries use those lines to complete Schedule M2NM.
How to file
Fiduciaries: Complete Schedule KF and provide it to each beneficiary covered by the form’s requirements. Enclose Schedule KF and copies of all Schedules KF and federal Schedules K-1 with Form M2.
Beneficiaries: Transfer the amounts to the return or schedule lines listed 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 by the credit instructions.
The supplied text does not give a mailing address or e-filing directions. For forms and information, it lists www.revenue.state.mn.us and 651-556-3075.
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 1–44 the same for resident and nonresident beneficiaries. Lines 45–49 are only for estate, trust, and nonresident individual beneficiaries. Lines 50–51 are only for nonresident beneficiaries.
- Not rounding amounts: Round to the nearest whole dollar.
- Overstating amounts on lines 45–48: If federal limitations kept an item from being fully included in federal income, include only the amount included in federal income.
- Ignoring an amended KF: If an amended Schedule KF changes your income or deductions, you must file an amended Minnesota return using Form M1X or Form M2X.
Questions people ask
What does Schedule KF show?
It shows your specific share of the fiduciary’s income, credits, and modifications. You use this information to complete your Minnesota Form M1 or Form M2.
What is Minnesota source gross income?
It is income before business or rental deductions and does not include losses. Line 49 is used to determine whether a nonresident individual must file a Minnesota individual income tax return. Minnesota source distributive income is the income ultimately taxed.
Do I need to file Form M1 if I elected composite tax?
If you elected for the fiduciary to pay composite tax, you are not required to file Form M1. You also are not required to file Form M1 if your filing requirement is satisfied through a PTE tax filing.
What should I do if line 6 contains installment sale information?
Nonresident individuals must file Form M1AR with their Minnesota individual income tax return. Resident individuals must keep Schedule KF for the entire period they, or an entity they have an interest in, receive installment sale payments. If they become nonresidents while payments are being made, they must file Form M1AR with their final resident tax return.