Income and Investments I Received a K-1. What Is It? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Published Mar 7, 2012 - [Updated Jul 10, 2019] 2 min read It’s mid-March. Nearly two months ago, you received your W-2. A short while later, the last of your 1099-INTs from your bank arrived. Just when you thought you had all of your tax documents, you surprisingly received a corrected 1099-DIV. If you weren’t such a procrastinator, you would have filed your tax return a few weeks ago. Good thing you hadn’t! K-1 But the strangest thing happened today – you opened the mail and there, with your name on it, is a tax form you’ve never seen: Form K-1. You weren’t expecting it, you never received one before, and you just got it, only a month before the tax deadline. You: What gives? A K-1 is a tax form distributed by many partnerships, S-Corps, estates, and trusts. If you are a general or limited partner of a partnership, a shareholder in an S-Corp, or the beneficiary of an estate or trust, you’re likely to receive a K-1. You: But what is it? A K-1 is just like a W-2 or other tax form. You use the information provided on the form to accurately complete your tax return. Except as illustrated in the opening scenario, K-1s are often distributed much later in the year than other tax forms. You: Why do they arrive so late? In order for the entity to send you the K-1, it first needs to complete its own tax return. You: Huh? For example, a partnership must prepare its taxes- its partnership tax return – before it sends out the K-1s to the partners. The due date for most partnership tax returns is March 15. Consequently, K-1s are often received much later than other tax forms. Furthermore, like individuals, partnerships can request extensions of time to file, often until September 15. You: So I might not receive a K-1 until after April 17, the deadline for my tax return? Indeed, it’s not only possible, it happens routinely. You: So how do I plan for that? Most people who receive K-1s know they will receive them. You: How do they know? It’s rare to own a partnership or be a trust fund kid and not know it. You: I suppose you’re right. So if get one of these K-1s, what would I do next? Once you’re ready to start your tax return, collect all your tax forms, including any K-1s. If you’re using tax software, the program will tell you what you need to do with each form. TurboTax easily guides you through entering items reported on your K-1 and puts the information on your proper tax forms. So, don’t lose too much sleep; the K-1 is, ultimately, just another form used to complete your taxes and report your income to the IRS. Previous Post How To Report Debt Canceled on Form 1099-C Next Post Traditional IRA Tax Benefits Written by More from 147 responses to “I Received a K-1. What Is It?” Newer Comments » I purchased turbo tax deluxe without realizing I was going to get a K-1. Do I have to upgrade to turbo tax premium because of this? Reply Hi Joan, You can use TurboTax Deluxe for a K-1. Thank you, Lisa Greene-Lewis Reply I sold an interest (unit) in a traded Limited Partnership. Do i show this as an “other” type of investment when entering the sale in the Turbo Tax investment sale section? Reply On my K-1 there is a supplemental information page for PA, do I have to file in the state of PA? It has PA-40 Line 4 or PA-41, Line 3 loss of $32. Schedule A Interest income gain of $21. Then zero for schedule B and D (dividend income and net gain/loss from disposition of property). In addition, there is a page with 23 states listed but very little monies involved. Do I have to file in each state? Thank you. Reply I am looking for more detailed instructions on how to handle boxes 13 and 20 on a given K-1 entry in Turbo Tax Premier. The reason I ask is that the input fields and the data provided on the K-1 do not match up well, particularly with box 20 and what they call “Other information – Code Y”. This is my first time handling this kind of statement as well as Turbo Tax so guidance here would be appreciated. Reply I’m supposed to receive 2 K-1s. One for a Life Insurance Trust and another for a Life Trust. I received the K-1 for the Life Insurance Trust and it listed a small amount for a excess deduction (11A) and a slightly larger amount for a long-term capital loss carry over (11C). There is also a $9 amount in (14B) foreign taxes. When I list the amount in Turbo Tax, do I need to list the amount of the Life Insurance Trust payout? Reply If the K-1 comes from a company in IRA retirement account, do you have to include the info on your tax return? I received one last year before I had filed my taxes, so I included the info, if I used it last year do I have to use it this year? Reply I received a K-1 with Part II Item I indicating type of entity is IRA/SEP. Do I need to report this anywhere? do I treat it the same as a K-1 for an INDIVIDUAL? Reply I am being asked for section 59 expenditures. Where do I find this info? Reply Hi Phyllis, Code J. Section 59(e)(2) expenditures are on an attached statement, the partnership will show the type and the amount of qualified expenditures for which you may make a section 59(e) election. The statement will also identify the property for which the expenditures were paid or incurred. If there is more than one type of expenditure, the amount of each type will also be listed. Thank you, Lisa Greene-Lewis Reply Can I file a 2010 K-1 that I received late on my 2011 return, or do I have to amend my 2010 return? Reply Hi Buc, Sorry you have to amend your 2010 tax return. Thank you, Lisa Greene-Lewis Reply Which Turbo Tax do we use for personal returns involving K-1 forms from a trust. Is premium the proper one, this is what we’ve been using. Reply Hi David, Yes premium is your best option. Please see this comparison chart http://turbotax.intuit.com/personal-taxes/online/compare.jsp Thank you, Lisa Greene-Lewis Reply My 18yo daughter received a K1 from a matured Giftrust Year ending 2011. I use TT Premium; On the Sched. K-1 (Form 1041) in Part III, 11A the final year deduction lists $10. The state Schedule K-1-T had no numbers listed in sections 3, 4, 5 or 6. Can I enter her K1 on my tax return since my daughter is listed as a dependent on my return or does she need to complete/file her own tax return? I’m confused, as the amount is so small and because she is listed as a dependent. In the letter from the Giftrust, it stated that she needs to complete a form 4970 which reports prior year income that may be subject to throwback taxes. Also, if she has to file her own return, is it better to file 1040 or 1040EZ or something else and attach the 4970 to it? Well I am one of those trust dummies as this is my first go around on a trust for a VA spouse. (long story). Can I use the Turbotax Deluxe to enter the K-1 data or do I need to upgrade to Premier or Business TT? Hi Al, You can use either Deluxe or Premier. You only need TurboTax business if you are the business who needs to issue K-1s and it sounds like you are the recipient. Please see our comparison chart to see the difference between Deluxe and Premier http://turbotax.intuit.com/personal-taxes/compare.jsp Thank you, Lisa Greene-Lewis Newer Comments » Leave a ReplyCancel reply Browse Related Articles Business Taxes Filing Business Taxes for an LLC for the First Time Latest News How the Social Security Fairness Act Boosts Benefits for Public Workers Income Tax by State Idaho State Income Tax in 2025: A Guide Income Tax by State Indiana State Income Tax in 2025: A Guide Income Tax by State Illinois State Income Tax in 2025: A Guide Income Tax by State Kansas State Income Tax in 2025: A Guide Income Tax by State Kentucky State Income Tax in 2025: A Guide Income Tax by State New York State Income Tax in 2025: A Guide Income Tax by State North Carolina State Income Tax in 2025: A Guide Income Tax by State Iowa State Income Tax in 2025: A Guide
I purchased turbo tax deluxe without realizing I was going to get a K-1. Do I have to upgrade to turbo tax premium because of this? Reply
I sold an interest (unit) in a traded Limited Partnership. Do i show this as an “other” type of investment when entering the sale in the Turbo Tax investment sale section? Reply
On my K-1 there is a supplemental information page for PA, do I have to file in the state of PA? It has PA-40 Line 4 or PA-41, Line 3 loss of $32. Schedule A Interest income gain of $21. Then zero for schedule B and D (dividend income and net gain/loss from disposition of property). In addition, there is a page with 23 states listed but very little monies involved. Do I have to file in each state? Thank you. Reply
I am looking for more detailed instructions on how to handle boxes 13 and 20 on a given K-1 entry in Turbo Tax Premier. The reason I ask is that the input fields and the data provided on the K-1 do not match up well, particularly with box 20 and what they call “Other information – Code Y”. This is my first time handling this kind of statement as well as Turbo Tax so guidance here would be appreciated. Reply
I’m supposed to receive 2 K-1s. One for a Life Insurance Trust and another for a Life Trust. I received the K-1 for the Life Insurance Trust and it listed a small amount for a excess deduction (11A) and a slightly larger amount for a long-term capital loss carry over (11C). There is also a $9 amount in (14B) foreign taxes. When I list the amount in Turbo Tax, do I need to list the amount of the Life Insurance Trust payout? Reply
If the K-1 comes from a company in IRA retirement account, do you have to include the info on your tax return? I received one last year before I had filed my taxes, so I included the info, if I used it last year do I have to use it this year? Reply
I received a K-1 with Part II Item I indicating type of entity is IRA/SEP. Do I need to report this anywhere? do I treat it the same as a K-1 for an INDIVIDUAL? Reply
Hi Phyllis, Code J. Section 59(e)(2) expenditures are on an attached statement, the partnership will show the type and the amount of qualified expenditures for which you may make a section 59(e) election. The statement will also identify the property for which the expenditures were paid or incurred. If there is more than one type of expenditure, the amount of each type will also be listed. Thank you, Lisa Greene-Lewis Reply
Can I file a 2010 K-1 that I received late on my 2011 return, or do I have to amend my 2010 return? Reply
Which Turbo Tax do we use for personal returns involving K-1 forms from a trust. Is premium the proper one, this is what we’ve been using. Reply
Hi David, Yes premium is your best option. Please see this comparison chart http://turbotax.intuit.com/personal-taxes/online/compare.jsp Thank you, Lisa Greene-Lewis Reply
My 18yo daughter received a K1 from a matured Giftrust Year ending 2011. I use TT Premium; On the Sched. K-1 (Form 1041) in Part III, 11A the final year deduction lists $10. The state Schedule K-1-T had no numbers listed in sections 3, 4, 5 or 6. Can I enter her K1 on my tax return since my daughter is listed as a dependent on my return or does she need to complete/file her own tax return? I’m confused, as the amount is so small and because she is listed as a dependent. In the letter from the Giftrust, it stated that she needs to complete a form 4970 which reports prior year income that may be subject to throwback taxes. Also, if she has to file her own return, is it better to file 1040 or 1040EZ or something else and attach the 4970 to it?
Well I am one of those trust dummies as this is my first go around on a trust for a VA spouse. (long story). Can I use the Turbotax Deluxe to enter the K-1 data or do I need to upgrade to Premier or Business TT?
Hi Al, You can use either Deluxe or Premier. You only need TurboTax business if you are the business who needs to issue K-1s and it sounds like you are the recipient. Please see our comparison chart to see the difference between Deluxe and Premier http://turbotax.intuit.com/personal-taxes/compare.jsp Thank you, Lisa Greene-Lewis