Why did I receive a Schedule K 1 after getting an inheritance?

When preparing the return, however, income earned by an estate or trust after death can be taxable, and some of that income may be carried out to beneficiaries and reported on Schedule K 1. When preparing the return, small factual differences, such as spouse versus nonspouse beneficiary status or gift versus inheritance, can completely change the result. When preparing the return, an inheritance of property or cash is generally not included in the beneficiary's federal gross income merely because it was inherited. Keep a complete file of the records used for the return position, then have a CPA, enrolled agent, or tax attorney verify the taxpayer, form, basis, and filing deadline.