U.S. · Tax forms
K-1 (1041) box 1 interest income.
What the number means, where it goes on Form 1040, and what is not in it.
Box 1 of a Schedule K-1 (Form 1041) is your share of the estate’s or trust’s taxable interest income. You report it on Form 1040 or 1040-SR, line 2b, and on Schedule B, Part I, line 1 if Schedule B applies to you. Tax-exempt interest is not in box 1: it appears in box 14 with code A and goes on line 2a as an information item. Use the picker to see where any box from 1 to 10 is reported.
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Boxes 1 to 10: where each amount goes (2025 K-1)
| Box | What it reports | Where it goes on your return |
|---|---|---|
| 1 | Interest income | Form 1040 or 1040-SR, line 2b; Schedule B (Form 1040), Part I, line 1, if applicable. |
| 2a | Ordinary dividends | Form 1040 or 1040-SR, line 3b; Schedule B, Part II, line 5, if applicable. |
| 2b | Qualified dividends | Form 1040 or 1040-SR, line 3a. |
| 3 | Net short-term capital gain | Schedule D (Form 1040), line 5. |
| 4a | Net long-term capital gain | Schedule D (Form 1040), line 12. |
| 4b | 28% rate gain | 28% Rate Gain Worksheet, line 4 (Schedule D instructions). |
| 4c | Unrecaptured section 1250 gain | Unrecaptured Section 1250 Gain Worksheet, line 11 (Schedule D instructions). |
| 5 | Other portfolio and nonbusiness income | Schedule E, line 33, column (f). Includes royalties, annuities and income in respect of a decedent that is not in boxes 1, 2a, 3, 4a, 6, 7 or 8. |
| 6 | Ordinary business income | Schedule E, line 33, column (d) or (f). |
| 7 | Net rental real estate income | Schedule E, line 33, column (d) or (f). |
| 8 | Other rental income | Schedule E, line 33, column (d) or (f). |
| 9 | Directly apportioned deductions (codes A depreciation, B depletion, C amortization) | Form 8582, or Schedule E, line 33, column (c) or (e). |
| 10 | Estate tax deduction | Schedule A (Form 1040), line 16. |
What box 1 contains
The IRS instructions describe box 1 as the beneficiary’s share of the taxable interest income. The amount is reported on line 2b of Form 1040 or 1040-SR, and on Schedule B (Form 1040), Part I, line 1 when you have to file Schedule B.
Interest can show up in three places on a K-1 and they are easy to mix up. Taxable interest is box 1. Tax-exempt interest is box 14, code A, and goes on line 2a of Form 1040 or 1040-SR as an item of information.
Worked example (illustrative numbers)
Dana is the sole beneficiary of a trust. Her K-1 shows $1,240 in box 1 and $300 in box 14 with code A. The $1,240 is taxable interest and goes on line 2b of her Form 1040, along with Schedule B if she has to file one. The $300 is tax-exempt interest, so it goes on line 2a, which is shown for information and is not added to income. The two amounts do not net against each other.
Keep the K-1, usually do not file it
The instructions say to keep Schedule K-1 for your records and not to file it with your return, with one exception: if the K-1 shows backup withholding in box 13 with code B, attach a copy to your return. The amount of backup withholding goes on line 25c of Form 1040 or 1040-SR.
Limits of this page
This page covers the K-1 for a beneficiary who files Form 1040 or 1040-SR. Beneficiaries who file another type of return should use the instructions for that return. An estate or trust’s own tax figures are on Form 1041, not here. Related codes are on the pages for box 11, box 12 and box 14.
Sources
- Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): Box 1 (Interest Income), Boxes 5, 9 and 10, and the notes on keeping the K-1 and attaching it when box 13 code B shows backup withholding. Read November 2, 2026.
- Schedule K-1 (Form 1041) for 2025, page 2 code list: Page 2 list of codes and the Report on column for boxes 1 to 14. Read November 2, 2026.
IRS instruction pages last reviewed April 30, 2026. Form and line references are those printed in the 2025 forms and instructions and can change.
Frequently asked questions
What is box 1 on a Schedule K-1 (Form 1041)?
It is the beneficiary's share of the estate's or trust's taxable interest income.
Where do I report K-1 1041 box 1 interest?
On Form 1040 or 1040-SR, line 2b, and on Schedule B (Form 1040), Part I, line 1 if Schedule B applies to you.
Is tax-exempt interest included in box 1?
No. Tax-exempt interest is reported in box 14 with code A and goes on Form 1040 or 1040-SR, line 2a, as an item of information.
Do I file the K-1 with my tax return?
Generally no. Keep it for your records. The exception is a K-1 that shows backup withholding in box 13 with code B, which you attach a copy of to your return.
Is box 1 the same as the interest on a 1099-INT?
No. A 1099-INT is issued by a bank or payer. Box 1 of the K-1 is your share of interest that the estate or trust received and allocated to you.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The estate, trust or corporation that issued the K-1, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.