Income and Investments

I Received a K-1. What Is It?

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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!

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.

147 responses to “I Received a K-1. What Is It?”

cb says:

April 9, 2012 at 7:46 am

While waiting for a reply here, I called the IRS. The rep said I do NOT need to report this unless the Partner’s ID number in Part II Box E on the K-1 form is my ID (my Social security). Turns out the ID number on the forms I got was the ID of my ROTH IRA, which she said is not a taxable entity, therefore I can ignore these forms–they’re just for my records. I asked if it matters whether Box 20 V exceeded $1000–maybe sometime in the future when the proceeds accumulate–and she reiterated: If Box E has the Roth’s ID number it doesn’t matter how much is in Box 20 V, because a Roth is a non-taxable entity

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Ginger says:

April 4, 2012 at 7:58 pm

On my K-1, I’ve got numbers for lines 20 Y1 (Gross receipts for UBTI), Y2 (Gross deductions for UBTI), and Y3 (Federal bonus depreciation included in line 1). It is not clear where these should go. Right now I have them listed as “Other” under the section “Code Y” but did not total the values. Is this correct, or should I look for somewhere else to enter these?

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Steve says:

April 4, 2012 at 5:47 pm

Hi – just received an unexpected K-1 for 2011, weeks after filing. Do I have to file an amended return if it shows a loss, both 8) short-term capital loss and 11) other income loss?
Thanks, didnt see this question asked.

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Larry says:

April 4, 2012 at 2:03 pm

If I did not receive any additional forms relating to three K-1’s for PA do I have to report any PA information on my state return? If so where do I get the #s if different from the federal K-1 #s?

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DennisL says:

April 4, 2012 at 10:23 am

Using TTD Premier K-1 Line-L Current Year Increase. Should this be use to calculate cost basis. Have searched and cannot find where Line-L is used in the return.

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Mike says:

April 4, 2012 at 9:16 am

Di I have to do a K-1 on tax’s if the holdings are in my IRA

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Frank S. says:

April 4, 2012 at 8:19 am

I am confused about the K-1 that my wife received from her father’s trust. It shows an amount in item 11 that is referred to as a deduction but it seems to have no effect on our final tax bill, rather we leave it in or take it out, it stays the same. Is it like a medical deduction in that it only applies over a certain percentage?

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Ken says:

April 3, 2012 at 7:42 pm

I received both a k-1 form 1041 and a k-1 form 38 from my North Dakota trust. When doing my non resident ND taxes there is no spot to add the info from form 38. I am using Turbo Tax Delux, do I need a different version?

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Robby says:

April 3, 2012 at 1:40 pm

I have a K-1 from a trust. TurboTax did not prompt for the fiduciary information. I assume I will need to enter this manually in the forms view, or did I miss something along the way?

Thanks!

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Edwin Shingleton says:

April 2, 2012 at 1:41 pm

My k1 20 Y shows STMT which shows a discription as Gross Receipts 6545

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