D-407 NC K-1: Beneficiary's Share of North Carolina Income, Adjustments, and Credits (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
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 2025. 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.
- For each nonresident beneficiary, they must also complete Part B.
Beneficiaries should keep the form for their records. They do not need to attach it to their North Carolina tax return unless specifically required.
What you'll need
To complete the form, have the following information available:
- The beneficiary’s identifying number, name, address, and ZIP code.
- The estate’s or trust’s name, address, ZIP code, and federal employer identification number.
- Whether the beneficiary was a North Carolina resident on the last day of the estate’s or trust’s taxable year.
- 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.
- Information about other tax credits and, for nonresident beneficiaries, the amounts attributable to North Carolina.
Common mistakes
- Do not include the handwritten-form instruction page with your submission.
- Use blue or black ink, not red ink.
- Do not use dollar signs, commas, or other punctuation marks when entering amounts.
- Set page scaling to “none,” leave Auto-Rotate and Center unchecked, and do not print on both sides of the paper.
- Submit originals, not photocopies of returns. Do not mix form types.
- For a nonresident beneficiary’s line 6, do not include intangible income from any source or business income from sources outside North Carolina.
- Remember that the income or loss on line 1 should already be included in federal adjusted gross income.
Questions people ask
What does Form D-407 NC K-1 report?
It reports each beneficiary’s share of an estate’s or trust’s income or loss, North Carolina adjustments, and tax credits.
Do I need to attach this form to my North Carolina return?
Not unless specifically required. Keep Form D-407 NC K-1, Form NC K-1 Supplemental Schedule, and any other information the estate or trust provides for your records.
Where do I enter the additions and deductions if I file Form D-400?
Enter the additions from line 2 on Form D-400 Schedule S, Part A. Enter the deductions from line 3 on Schedule S, Part B.
Where do I report the credits if I file Form D-400?
The form directs you to Form D-400TC for line 4, tax paid to another state or country, and line 5, other tax credits.
Which part is only for nonresident beneficiaries?
Part B is completed by estates and trusts for each nonresident beneficiary. It reports the portions of lines 1, 2, and 3 attributable to North Carolina.