D-407 NC K-1: Beneficiary's Share of North Carolina Income, Adjustments, and Credits (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-407 NC K-1 reports each beneficiary’s share of an estate’s or trust’s income or loss, North Carolina adjustments, and tax credits for 2024. It also reports amounts attributable to North Carolina for nonresident beneficiaries.
Who files this form
Estates and trusts use Form D-407 NC K-1 to report each beneficiary’s share of income or loss, North Carolina adjustments, and tax credits.
- All estates and trusts must complete Part A for each beneficiary.
- Part B must also be completed for each nonresident beneficiary.
What you'll need
The form calls for the beneficiary’s identifying number, name, and address, plus the estate’s or trust’s name, address, and federal employer ID number.
The amounts reported come from:
- Federal Form 1041, line 18, for the beneficiary’s share of income or loss.
- Form D-407, Schedule A, lines 4 and 5, for additions and deductions.
- Form D-407TC, Part 5, Section A, line 4, for tax paid to another state or country.
Beneficiaries should keep Form D-407 NC K-1, Form NC K-1 Supplemental Schedule, and any other information provided by the estate or trust for their records.
Common mistakes
- Do not include intangible income from any source or business income from outside North Carolina on line 6.
- Remember that the income or loss shown on line 1 should already be included in the beneficiary’s federal adjusted gross income.
- Keep the K-1 and related information for your records. You do not need to attach them to your North Carolina tax return unless specifically required.
Questions people ask
Do I need to attach this K-1 to my North Carolina tax return?
No, unless you are specifically required to do so. Keep it, the Form NC K-1 Supplemental Schedule, and any other information provided by the estate or trust for your records.
Where do I report the additions and deductions if I file Form D-400?
Report line 2 additions on Form D-400 Schedule S, Part A, and line 3 deductions on Schedule S, Part B.
Where do I report the tax credits if I file Form D-400?
The form directs you to Form D-400TC for both line 4, tax paid to another state or country, and line 5, other tax credits.
What residency question does the form ask?
The form asks whether the beneficiary was a North Carolina resident on the last day of the trust’s or estate’s taxable year. Check “Yes” or “No.”