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?” « Older Comments Newer Comments » Working on K-1 in Premier. Got stuck when I got to the “Enter Sales Price” page. My partnership was sold. What do you enter in this blanks. How does it know if it is long or short term if it was bought various times? Reply I have received a K-1 for an investment that is in a Roth IRA. I have not retired and I am not receiving any payments from the Roth. Does this need to reported? Reply I received a K-1 From a publicly traded energy partnership that I have invested in through my IRA account. When I enter the info into turbotax I do not see an option to select this as an IRA account and turbotax is treating the gains as taxable income. Is this correct or am I doing something wrong? Reply I received K-1s for the public Limited Partnership securities in my IRA account. Do I need to file them with my tax return? Reply I’ve been receiving a Form 1065 K-1 from a publicly-traded partnership for several years, and found it fairly straightforward to enter the data in TurboTax Deluxe. The only complication was that the partnership reported values in both Box 1 and Box 3, so I had to fill out two K-1s every year. In 2011, I sold half of my shares in the partnership. I understand that ROC in previous years decreased my basis, and that information has been reported to me. The problem I have is that it seems like I’m entering the sale twice — with reduced basis on the K-1 and with its full original basis as a stock sale on Schedule D. Is that how it should be done? Or should I remove the sale I’d already put in the return I’m working on? Reply I purchased and installed TurboTax Deluxe. I will have 2 K-1’s to enter. Can I do that on Deluxe? Or do I need to upgrade to Premium? I so, can I do that on line without paying full price for both Deluxe and Premium? Reply Hi Scott, Yes you can use TurboTax Deluxe if you have K-1s you do not need to upgrade. Thank you, Lisa Greene-Lewis Reply I entered my K-1 under Business Income, but it depicts a $0 under business income but instead shows the amount by 1099-DIV? I don’t understand have I done something wrong? Reply Hi Danny, If you followed the interview and entered the information per the box numbers on your K-1 you are fine. Box 6a and 6b on your K-1 are related to amounts designated as Ordinary Dividends and Qualifying Dividends. Thank you, Lisa Greene-Lewis Reply I received a K1 from a trust in OH with a final year deduction. I figured out the federal part, but do I have to make adjustments on my KS return since the trust was from another state? Reply Hi Amy, Yes, you would have to prepare a non-resident tax return if the K-1 is for income received in another state. TurboTax should guide you through the process. You would have to indicate that you received income from another state in the federal interview. Thank you, Lisa Greene-Lewis Reply If the income on the K-1 from another state is related to an IRA distribution from a 1099-R to the trust, would you need to file a return to the other state. For example, my residence is Colorado and the Trust was located in Utah. Hi Warren, You may need to, however if the distribution went to the trust and not to you, you may not need to file it. You have to check and see if the K-1 has your social security number or the IRA account number. If it does not indicate your social security number it was issued for informational purposes. Thank you, Lisa Greene-Lewis Do I need to amend my tax returns (both federal and state) if all numbers are zero? Reply Hi Phillip, I think you are asking if you received a K-1 with all numbers as 0 would you need to amend your tax return, right? If so, no you don’t need to amend your tax return if there are no numbers on the K-1. Thank you, Lisa Greene-Lewis Reply Got the k-1(estate distribution). Turbo tax ask questions on line 14 that are not on this form – such as – what country is the income from that relates to tax small tax paid, There are more questions for line 14 we can’t answerr. In addition line 11 had no amt in it but box E is checked for final K-1. I’m confused. 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Working on K-1 in Premier. Got stuck when I got to the “Enter Sales Price” page. My partnership was sold. What do you enter in this blanks. How does it know if it is long or short term if it was bought various times? Reply
I have received a K-1 for an investment that is in a Roth IRA. I have not retired and I am not receiving any payments from the Roth. Does this need to reported? Reply
I received a K-1 From a publicly traded energy partnership that I have invested in through my IRA account. When I enter the info into turbotax I do not see an option to select this as an IRA account and turbotax is treating the gains as taxable income. Is this correct or am I doing something wrong? Reply
I received K-1s for the public Limited Partnership securities in my IRA account. Do I need to file them with my tax return? Reply
I’ve been receiving a Form 1065 K-1 from a publicly-traded partnership for several years, and found it fairly straightforward to enter the data in TurboTax Deluxe. The only complication was that the partnership reported values in both Box 1 and Box 3, so I had to fill out two K-1s every year. In 2011, I sold half of my shares in the partnership. I understand that ROC in previous years decreased my basis, and that information has been reported to me. The problem I have is that it seems like I’m entering the sale twice — with reduced basis on the K-1 and with its full original basis as a stock sale on Schedule D. Is that how it should be done? Or should I remove the sale I’d already put in the return I’m working on? Reply
I purchased and installed TurboTax Deluxe. I will have 2 K-1’s to enter. Can I do that on Deluxe? Or do I need to upgrade to Premium? I so, can I do that on line without paying full price for both Deluxe and Premium? Reply
Hi Scott, Yes you can use TurboTax Deluxe if you have K-1s you do not need to upgrade. Thank you, Lisa Greene-Lewis Reply
I entered my K-1 under Business Income, but it depicts a $0 under business income but instead shows the amount by 1099-DIV? I don’t understand have I done something wrong? Reply
Hi Danny, If you followed the interview and entered the information per the box numbers on your K-1 you are fine. Box 6a and 6b on your K-1 are related to amounts designated as Ordinary Dividends and Qualifying Dividends. Thank you, Lisa Greene-Lewis Reply
I received a K1 from a trust in OH with a final year deduction. I figured out the federal part, but do I have to make adjustments on my KS return since the trust was from another state? Reply
Hi Amy, Yes, you would have to prepare a non-resident tax return if the K-1 is for income received in another state. TurboTax should guide you through the process. You would have to indicate that you received income from another state in the federal interview. Thank you, Lisa Greene-Lewis Reply
If the income on the K-1 from another state is related to an IRA distribution from a 1099-R to the trust, would you need to file a return to the other state. For example, my residence is Colorado and the Trust was located in Utah.
Hi Warren, You may need to, however if the distribution went to the trust and not to you, you may not need to file it. You have to check and see if the K-1 has your social security number or the IRA account number. If it does not indicate your social security number it was issued for informational purposes. Thank you, Lisa Greene-Lewis
Hi Phillip, I think you are asking if you received a K-1 with all numbers as 0 would you need to amend your tax return, right? If so, no you don’t need to amend your tax return if there are no numbers on the K-1. Thank you, Lisa Greene-Lewis Reply
Got the k-1(estate distribution). Turbo tax ask questions on line 14 that are not on this form – such as – what country is the income from that relates to tax small tax paid, There are more questions for line 14 we can’t answerr. In addition line 11 had no amt in it but box E is checked for final K-1. I’m confused. Reply