*237111*

2023 Schedule KF, Beneficiary’s Share of Minnesota Taxable Income
Fiduciary: Complete and provide Schedule KF to each estate, trust, or nonresident individual beneficiary with Minnesota source income and 
any Minnesota beneficiary who has adjustments to income or credits. 

Tax year beginning (MM/DD/YYYY)      /    /       , ending (MM/DD/YYYY)      / /                                                                        Amended KF: 

Beneficiary’s Social Security Number                                Estate’s or Trust’s Federal ID Number                                               Minnesota Tax ID Number

Beneficiary’s Name                                                  Estate’s or Trust’s Name 

Address of Beneficiary                                              Address of Fiduciary

Beneficiary City                          State  ZIP Code           Fiduciary City                                                                      State    ZIP Code
Calculate lines 1–40 the same for all resident and nonresident beneficiaries. Calculate lines 41-45 for estate, trust, and nonresident individual 
beneficiaries only. Calculate lines 46-47 for nonresident beneficiaries only. Round amounts to the nearest whole dollar.
Additions to income                                                                                                                                             Beneficiary: Include on:

 1  State and municipal bond interest from outside Minnesota ... ...... ..... ....... .....  1                                                                    Line 1, Schedule M1M

 2     State taxes deducted in arriving at net income   .... ...... ...... ..... ...... ...... ...  2                                                            Line 2, Schedule M1MB
  3    Expenses deducted that are attributable to income not taxed by Minne- 
      sota (other than interest or mutual fund dividends from U.S. bonds)    . .  . . . . . . .  . . . . .  . . . .  3                                           Line 3, Schedule M1M
 4     80 percent of the suspended loss from 2001–2005 or 2008–2022 
       that was generated by bonus depreciation ... ...... ..... ....... ..... ...... ..... ...  4                                                              Line 4 inst., Sched. M1MB

 5     80 percent of federal bonus depreciation  ... ...... ..... ....... ..... ...... ..... .....  5                                                           Line 1 inst., Sched. M1MB
 6a  Beneficiary’s pro rata gross profit from installment sale of pass-through entities 
       (see instructions) ... ...... ..... ....... ..... ...... ..... ..... ...... ...... ......   6a                                                              Line 1, Schedule M1AR

 6b  Beneficiary’s pro rata installment sale income from sales of pass-through entities   . . .  . . .                                              6b             Line 3, Schedule M1AR 
      (see instructions) 
 6c  Applicable S corporation’s or partnership’s apportionment percentage of the year of sale    6c                                                                Line 6, Schedule M1AR 
       (see instructions) 
 7     This line intentionally left blank  .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . .   7 

     8 Net operating loss (NOL) carryover adjustment ... ...... ....... ..... ..... ...... ....  8                                                               Line 5, Schedule M1MB

 9  Foreign derived intangible income (FDII) deduction... ...... ..... ....... ..... ...... .  9                                                                  Line 3, Schedule M1MB

  10  Other additions (see instructions)  . ...... ..... ...... ..... ....... ..... ..... .....   10                                                             See line 10 instructions

  11  This line intentionally left blank   .. ..... ....... ..... ...... ..... ...... ..... .....   11 

  12  This line intentionally left blank   .. ..... ....... ..... ...... ..... ...... ..... .....   12 

  13  This line intentionally left blank   .. ..... ....... ..... ...... ..... ...... ..... .....   13 

  14  This line intentionally left blank   .. ..... ....... ..... ...... ..... ...... ..... .....   14 

  15  This line intentionally left blank   .. ..... ....... ..... ...... ..... ...... ..... .....   15 

                                                                                                                                                                 (continued)
                                                                    9995

2023 KF, page 2
                                                                                                                                                             *237121*
Beneficiary’s Name                                                         Beneficiary’s Social Security Number
Subtractions from income
 16  Interest on U.S. government bond obligations, minus any expenses 
     deducted on the federal return that are attributable to this income   .... ....... ..... .   16                                                           Line 14, Schedule M1M

 17  State income tax refund ... ...... ..... ....... ..... ...... ..... ..... ...... ......   17                                                              Line 6, Form M1

 18  Federal bonus depreciation subtraction ... ...... ..... ....... ..... ...... ..... ....   18                                                              Line 10, Schedule M1MB

 19  Subtraction for railroad maintenance expenses ... ...... ..... ....... ..... ...... .... 19                                                               Line 14, Schedule M1MB  

 20  This line intentionally left blank ... ...... ..... ....... ..... ...... ..... ..... ...... . 20 

 21  Net operating loss (NOL) carryover adjustment ... ...... ..... ....... ..... ...... ...   21                                                             Line 13, Schedule M1MB 

 22  Deferred foreign income (section 965) . ..... ...... ..... ...... ...... ..... ...... ..   22                                                            Line 17, Schedule M1MB 

 23  Disallowed section 280E expenses of a licensed cannabis business ... ...... ..... .....   23                                                             Line 16, Schedule M1MB

 24  Delayed business interest ... ...... ..... ....... ..... ...... ..... ..... ...... .....   24                                                             Line 18, Schedule M1MB  

 25  Other subtractions (see instructions)... ...... ..... ....... ..... ...... ..... ..... ..   25                                                            See line 25 instructions 

 26  This line intentionally left blank ... ...... ..... ....... ..... ...... ..... ..... ......   26 

 27  This line intentionally left blank ... ...... ..... ....... ..... ...... ..... ..... ......   27 

 28  This line intentionally left blank ... ...... ..... ....... ..... ...... ..... ..... ......   28 

 29  This line intentionally left blank ... ...... ..... ....... ..... ...... ..... ..... ......   29 
Credits (you must enclose this schedule with your Form M1 if claiming a credit)                                                                                 Include on:
30   Any Minnesota income tax withholding credit received by the fiduciary ... ...... ..... .   30                                                                 Line 7, Schedule M1W

 31   Credit for increasing research activities  .. ..... ..... ...... ...... ..... ...... ......   31                                                             Line 16, Schedule M1C

 32   Film Production Tax Credit   ..... ...... ..... ...... ..... ....... ..... ..... ...... .   32                                                            Line 11,  Schedule M1C
      Enter the credit certificate number:  TAXC - 
 33   Tax Credit for Owners of Agricultural Assets  .. ..... ...... ..... ...... ...... ...... .   33                                                              Line 12, Schedule M1C
      Enter the certificate number from the certificate 
      you received from the Rural Finance Authority: AO       - 
 34   Unused credit for owners of agricultural assets from a prior year ... ...... ..... ......   34                                                               Line 18, Schedule M1C 
      AO  - 
      Remaining carryover years: 
 35  Housing Tax Credit . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . .  .  35       Line 15, Schedule M1C 
     Enter certificate number from Minnesota Housing: SHTC               - 
 36  Short Line Railroad Infrastructure Modernization Credit   .  . . . . .  . . . . . .  . . . . . . .  . . . . .  . .  .  36                                     Line 14, Schedule M1C 

 37  Credit for Sales of Manufactured Home Parks to Cooperatives  . . .  . . . . . .  . . . . .  . . . . . . .  .  .   37                                          Line 13, Schedule M1C 

 38   Credit for historic structure rehabilitation ... ...... ..... ....... ..... ...... ..... ..   38                                                          Line 6, Schedule M1REF  
      National Park Service (NPS) project number:    
 39   Pass-Through Entity Tax Credit  ... ...... ...... ..... ...... ..... ...... ...... .....   39                                                             Line 9, Schedule M1REF

 40   Minnesota backup withholding   .... ....... ..... ..... ...... ..... ...... ...... ...   40                                                                  Line 7, Schedule M1W
                                                                                                                                                                        (continued)

                                                                 9995

2023 KF, page 3
                                                                                                                            *237191*
Beneficiary’s Name                                                                      Beneficiary’s Social Security Number
Estate, trust, and nonresident individual beneficiaries                                                                                    Include on Schedule 
Minnesota portion of amounts from federal Schedule K-1 (1041)                                                                             M1NR, column B on:
 41 Capital gain or loss on Minnesota real property  ... ...... ..... ....... ..... ...... ..                     41                                         Line 4

 42  a  Business income or loss   . . .  . . . . .  . . . . . .  . . . . . a   
   b  Income from Minnesota rents, royalties, part- 
      nerships, S corporations, estates and trusts  . .  . b                      

    c  Farm income or loss   . . .  . . . . . .  . . . . .  . . . . .  . .  .  c  

     Total (add lines 42a, 42b, and 42c)   .. ..... ..... ...... ...... ..... ....... .... ....                   42                                         Line 6
 43  Interest and dividend income derived from a trade or business  
     (S corporations and partnerships) that is assignable to Minnesota ... ...... ..... .....                     43                                         Line 2

 44  Other income  ... ...... ..... ....... ..... ...... ..... ..... ...... ...... ...... .                       44                                         Line 8

 45  Minnesota source gross income from this fiduciary  ... ...... ..... ....... ..... ....    45                                         information only
Nonresident beneficiaries
Composite income tax for electing nonresident beneficiaries
 46  Minnesota source distributive income from this fiduciary                     ... ...... ..... ....... .....  46                      information only
 47  Minnesota composite income tax paid by fiduciary.  
     If the beneficiary elected composite income tax, check this box                     ...... ...... ..         47             composite income tax

 Fiduciary: Enclose this schedule and copies of all Schedules KF and federal Schedules K-1 with your Form M2. 
Beneficiary: See instructions. Include this schedule when you file your Form M1.

                                                                                  9995

2023 Schedule KF Instructions
Beneficiary’s use of information provided on Schedule KF

Purpose of Schedule KF
Schedule KF is a supplemental schedule provided by the fiduciary to its beneficiaries. The beneficiaries need this information to complete a 
Form M1, Minnesota Individual Income Tax Return, or Form M2, Income Tax Return for Estates and Trusts.
The schedule shows each beneficiary their specific share of the fiduciary’s income, credits and modifications. An individual beneficiary 
who is a Minnesota resident must report all income from the trust or estate. All other beneficiaries must report income which is allocable to 
Minnesota.
These instructions are intended to help you report your share of the fiduciary’s income, credits and modifications on your Minnesota return.
If you received an amended Schedule KF from the fiduciary and your income or deductions have changed, you must file an amended 
Minnesota return. To amend your return, use Form M1X, Amended Minnesota Income Tax Return, or Form M2X, Amended Income Tax 
Return for Estates and Trusts.

Line Instructions
Include amounts on the appropriate lines as shown on Schedule KF. 
Line 1 – State and Municipal Bond Interest
Individuals: Include on line 1 of Schedule M1M.
Estates and Trusts: Include on line 41 of Form M2.
Line 2 – State Taxes Deducted
Individuals: Include on line 2 of Schedule M1MB.
Estates and Trusts: Include on line 42 of Form M2.
Line 3 – Expenses Deducted Attributed to Income Not Taxed by Minnesota
Individuals: Include on line 3 of Schedule M1M.
Estates and Trusts: Include on line 43 of Form M2.
Line 4 – 80% Suspended Loss of Bonus Depreciation
Individuals: See Schedule M1MB, worksheet for line 4 instructions, to determine how to report this amount.
Estates and Trusts: Include on line 44 of Form M2.
Line 5 – 80% Federal Bonus Depreciation
Individuals: See Schedule M1MB, worksheet for line 1 instructions, to determine how to report this amount.
Estates and Trusts: Include this amount on step 2 for the worksheet to determine Line 45 of the Form M2.
Lines 6a, 6b, and 6c – Accelerated Installment Sale Gains
Nonresident Individuals: If any information is reported to you on line 6 of Schedule KF, file Form M1AR, Accelerated Recognition of 
Installment Sale Gains, with your Minnesota individual income tax return. 
Resident Individuals: If any information is reported to you on line 6 of Schedule KF, retain a copy of this schedule for your records for the 
entire period that you or an entity you have an interest in is receiving installment sale payments. If you become a nonresident in a future year 
while payments are being made, you are required to file Form M1AR, Accelerated Recognition of Installment Sale Gains, with your final 
resident tax return. 
Estates and Trusts: Pass through pro rata to your beneficiaries.
Line 7
This line is intentionally left blank.
Line 8 – Net Operating Loss (NOL) Carryover Adjustment
Individuals: Include on line 5 of Schedule M1MB.
Estates and Trusts: Include on line 48 of Form M2.
Line 9 – Foreign Derived Intangible Income (FDII) Deduction
Individuals: Include on line 3 of Schedule M1MB.
Estates and Trusts: Include on line 49 of Form M2.
Line 10 - Other Additions
Individuals: Include on the appropriate line on Schedule M1M.
Estates and Trusts: Include on line 51 of Form M2.

                                                                                                                    Continued                 1

2023 Schedule KF Instructions (continued)

Lines 11 through 15
These lines are intentionally left blank.
Line 16 – Interest on U.S. Government Bond Obligations 
Individuals: Include on line 14 of Schedule M1M.
Estates and Trusts: Include on line 57 of Form M2.
Line 17 – State Income Tax Refund
Individuals: Include on line 6 of Form M1.
Estates and Trusts: Include on line 58 of Form M2.
Line 18 – Federal Bonus Depreciation Subtraction
Individuals: Include on line 10 of Schedule M1MB.
Estates and Trusts: Include on line 59 of Form M2.
Line 19 – Subtraction for Railroad Maintenance Expenses
Individuals: Include on line 14 of Schedule M1MB.
Estates and Trusts: Include on line 61 of Form M2.
Line 20 
This line is intentionally left blank.
Line 21 – Net Operating Loss (NOL) Carryover Adjustment
Individuals: Include on line 13 of Schedule M1MB.
Estates and Trusts: Include on line 62 of Form M2.
Line 22 – Deferred Foreign Income (Section 965)
Individuals: Include on line 17 of Schedule M1MB.
Estates and Trusts: Include on line 63 of Form M2.
Line 23 – Disallowed Section 280E Expenses of a Licensed Cannabis Business
Individuals: Include on line 16 of Schedule M1MB.
Estates and Trusts: Include on line 64 of Form M2.
Line 24 - Delayed Business Interest
Individuals: Include on line 18 of Schedule M1MB.
Estates and Trusts: Include on line 65 of Form M2.
Line 25 - Other Subtractions
Individuals: Include on the appropriate line on Schedule M1M.
Estates and Trusts: Include on Line 67 of Form M2.
Lines 26 through 29
These lines are intentionally left blank.
Line 30 –Minnesota Income Tax Withholding Credit
Individuals: Include on line 7, column C of Schedule M1W. To claim this credit, you must include this schedule with Form M1.
Estates and Trusts: Include on line 27 of Form M2. To claim this credit, you must include this schedule with Form M2.
Line 31 – Credit for Increasing Research Activities
Individuals: Include on line 16 of Form M1C. To claim this credit, you must include this schedule with Form M1.
Estates and Trusts: Include on line 22 of Form M2. To claim this credit, you must include this schedule with Form M2.
Line 32 - Film Production Tax Credit
Individuals: Include on line 11 of Form M1C and enter the certificate number in the space provided. To claim this credit, you must include 
this schedule with Form M1.
Estates and Trusts: Include on line 16 of Form M2 and enter the certificate number in the space provided. To claim this credit, you must 
include this schedule with Form M2.

                                                                                                                     Continued             2

2023 Schedule KF Instructions (continued)

Line 33 – Tax Credit for Owners of Agricultural Assets
Individuals: Include on line 12 of Form M1C and enter the certificate number in the space provided. To claim this credit, you must include 
this schedule with Form M1.
Estates and Trusts: Include on line 17 of Form M2 and enter the certificate number in the space provided. To claim this credit, you must 
include this schedule with Form M2.
Line 34 - Unused Credit for Owners of Agricultural Assets from a Prior Year
Individuals: Include on line 18 of Form M1C and enter the certificate number in the space provided. The Schedule KF provides the 
remaining years to which the unused credit may be carried forward. This number includes the current tax year. To claim this credit, you must 
include this schedule with Form M1.
Estates and Trusts: Include on line 18 of Form M2 and enter the certificate number in the space provided. The Schedule KF provides the 
remaining years to which the unused credit may be carried forward. This number includes the current tax year. To claim this credit, you must 
include this schedule with Form M2.
Line 35 - Housing Tax Credit
Individuals: Include on line 15 of Form M1C and enter the certificate number in the space provided. To claim this credit, you must include 
this schedule with Form M1.
Estates and Trusts: Include on line 19 of Form M2 and enter the certificate number in the space provided. To claim this credit, you must 
include this schedule with Form M2.
Line 36 - Short Line Railroad Infrastructure Modernization Credit
Individuals: Include on line 14 of Form M1C. To claim this credit, you must include this schedule with Form M1.
Estates and Trusts: Include on line 20 of Form M2. To claim this credit, you must include this schedule with Form M2.
Line 37 - Credit for Sales of Manufactured Home Parks to Cooperatives
Individuals: Include on line 13 of Form M1C. To claim this credit, you must include this schedule with Form M1.
Estates and Trusts: Include on line 21 of Form M2. To claim this credit, you must include this schedule with Form M2.
Line 38 – Credit for Historic Structure Rehabilitation
Individuals: Include on line 6 of Schedule M1REF and enter the NPS project number in the space provided. To claim this credit, you must 
include this schedule with Form M1.
Estates and Trusts: Include on line 29 of Form M2 and enter the NPS project number in the space provided. To claim this credit, you must 
include this schedule with Form M2.
Line 39 - Pass-Through Entity Tax Credit
Individuals: Include on line 9 of Schedule M1REF. To claim this credit, you must include this schedule with Form M1.
Estates and Trusts: Include on line 26 of Form M2. To claim this credit, you must include this schedule with Form M2.
Line 40 – Minnesota Backup Withholding
Individuals: Include on line 7, column C of Schedule M1W. To claim this credit, you must include this schedule with Form M1.
Estates and Trusts: Pass through pro rata to your beneficiaries.
Lines 41 – 44 Minnesota Portion of Federal Amounts
Lines 41-44 apply to estate, trust, and nonresident individual beneficiaries. All income of a Minnesota individual resident beneficiary is 
assigned to Minnesota, regardless of the source.
If certain items are not entirely included in your federal income because of passive activity loss limitation, capital loss limitations, section 
179 limitations or for other reasons, include only the amounts that you included in your federal income.
Individuals: Use the information on lines 41-44 to complete Schedule M1NR.
Estates and Trusts: Use the information on lines 41-44 to complete Schedule M2NM.
Line 45 – Minnesota Source Gross Income
Minnesota source gross income is used to determine if a nonresident individual is required to file a Minnesota individual income tax return. 
Gross income is income before business or rental deductions and does not include losses.
If your 2023 Minnesota source gross income is $13,825 or more and you did not elect composite filing or have your filing requirement 
satisfied through a PTE tax filing, then you are required to file Form M1 and Schedule M1NC, Nonresident/Party-Year Residents.
If your 2023 Minnesota source gross income is less than $13,825 and you had Minnesota tax withheld (see line 30 and line 40 of Schedule 
KF), file Form M1 and Schedule M1NR to receive a refund.

                                                                                                                                                 3

2023 Schedule KF Instructions (continued)

Line 46 – Minnesota Source Distributive Income
Although Minnesota source gross income (line 45 of Schedule KF) determines whether you must file a Minnesota return, your Minnesota 
source distributive income is ultimately taxed.
Lines 46 – 47 were used to determine your share of the fiduciary’s Minnesota source distributive income. You may need to refer to these 
amounts when you file your state’s income tax return.
If you elected for the fiduciary to pay composite tax or have your filing requirement satisfied through a PTE tax filing, then you are not 
required to file Form M1.
Line 47 – Minnesota Composite Income Tax
If you elected composite income tax, the amount paid on your behalf equals 9.85% of your Minnesota taxable income on line 46, minus your 
share of any credits on lines 30, 32 through 38, and 40. You are not required to file Form M1.

Forms and Information
Website: www.revenue.state.mn.us
Phone: 651-556-3075
This information is available in alternate formats.