2022 Form K-1 deductions, no tax paid, do I need to submit an amended return?

[m3110w]

For tax year 2022 I used the standard deduction and paid zero federal taxes. My only income was some small interest and dividend income. I submitted my form 1040 2022 tax return back in March 2023. A few days ago I got a Schedule K-1 (form 1041) from our family Trust. The Schedule K-1 listed some small deductions for me for tax year 2022.

Because I paid no taxes for 2022, I'm guessing the form K-1 deductions are irrelevant for me. And I'm guessing I don't need to submit an amended 2022 tax return, form 1040. That sound right? Any other details needed?

[SeattleCPA]

It's very possible the deductions shown on K-1 will further reduce your income. I.e., that the deductions aren't going on Schedule A but on Schedule E.

But the amounts may not be big enough to worry about. E.g., a $1K deduction might only reduce your taxes by $100 or $200.

[m3110w]

"But the amounts may not be big enough to worry about. E.g., a $1K deduction might only reduce your taxes by $100 or $200."

I'm a bit confused. Without the K-1 deductions I already paid zero taxes for tax year 2022. So it seems that the additional K-1 deductions will not change anything in my case since I paid no taxes to begin with. So my hunch is there's no need to me to send an amended 2022 return. That sound right?

Let me know if I'm missing something. I've close to zero knowledge of tax accounting.

[SeattleCPA]

"But the amounts may not be big enough to worry about. E.g., a $1K deduction might only reduce your taxes by $100 or $200."

I'm a bit confused. Without the K-1 deductions I already paid zero taxes for tax year 2022. So it seems that the additional K-1 deductions will not change anything in my case since I paid no taxes to begin with. So my hunch is there's no need to me to send an amended 2022 return. That sound right?

Let me know if I'm missing something. I've close to zero knowledge of tax accounting.

With little detailed info, it's pretty hard to guess whether adding deductions changes your federal or state tax bill or gets you a federal or state refund.

Seems like it's also possible some deduction on K-1 from trust might produce a carryforward either on federal return or a state return.

And I guess other question might be whether any credits get added to your return if your income falls.

Again if the amounts are relatively small, any tax benefit you receive by going to the expense and work of amended is probably pretty modest.

[m3110w]

Thanks for the details. I'll do some more research.