Updated September 29, 2026. Quick answer: Box 14 code H is the beneficiary’s adjustment for section 1411 net investment income or deductions. It is entered on line 7 of Form 8960, the form used for the net investment income tax. It is an adjustment figure, not the tax itself.
What code H is
The instructions read here are the 2025 edition of the IRS Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (Catalog Number 11374Z, dated March 13, 2025), the edition served at the IRS standing PDF address when read on September 29, 2026. They are written for the beneficiary; the fiduciary’s own instructions are in the Instructions for Form 1041. The IRS instruction reads: “This amount is the beneficiary’s adjustment for section 1411 net investment income or deductions.” “Enter this amount on line 7 of Form 8960, as applicable.” “See the Instructions for Form 8960.”
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| H | Adjustment for section 1411 net investment income or deductions | Form 8960, line 7 (also see the beneficiary’s instructions) |
What it is not
Code H is the estate’s or trust’s adjustment carried to you. Whether you owe the net investment income tax depends on your own income and Form 8960, not on the K-1 alone. CMG’s net investment income tax page and page on the trust threshold cover the tax itself.
Common mistakes
- Reading code H as the tax owed. It is an adjustment entered on Form 8960 line 7.
- Confusing it with code E, net investment income on Form 4952.
- Assuming a code H amount means you owe the tax. That depends on your own Form 8960.
Related: Schedule K-1 Box 14 Codes A, B, E and G Explained, Schedule K-1 Box 14 Code I: Section 199A Information, and the net investment income tax.
Every box and code in one place: the Schedule K-1 (Form 1041) boxes table. What a K-1 from an estate reports overall is on the Schedule K-1 for estates page.
Sources
- IRS, Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf
- IRS, Schedule K-1 (Form 1041) 2025, Beneficiary’s Share of Income, Deductions, Credits, etc., page 2 code list: https://www.irs.gov/pub/irs-pdf/f1041sk1.pdf
Source: the IRS instructions for the beneficiary who receives Schedule K-1 (Form 1041), and the form’s own code list, read at irs.gov on September 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the estate’s or trust’s fiduciary or the IRS is the right place to confirm anything consequential.