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 » We received a K-1 after filing and receiving our refund. It lists a distribution in box 19 (A), but we sold our shares in 2009, and had no money coming in or going out in 2010. Do I need to amend my return? Thanks. Reply Hi Nancy, You would need to amend your tax return since the K-1 information was reported to the IRS, however if you think this was reported in error do not amend your tax return, you need to contact the business that issued the K-1 and have them correct the information reported to the IRS. Thank you, Lisa Greene-Lewis Reply Thanks for your help, Lisa. Is this true?? 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 Reply Hi, Yes, if the K-1 does not have your social security number and the ID of your Roth then it was sent to you for informational purposes. Thank you, Lisa Greene-Lewis Reply Hi I have K1 from the stock i owned , i sold the stock last year and the K1 says its final where do i enter that info that this is a final K1 Reply Hi, 1. Go to the Federal Taxes tab 2. Click “Wages and Income” 3. Click “Explore on My Own” 4. On the “Your 2011 Income Summary” screen, scroll down to K-1s under Business Items. You will have the option to enter this information on the “Describe this Partnership” screen. Thank you, Lisa Greene-Lewis Reply Hi, I am filing my personal tax form 1040. I have to enter K-1 that I received from company. I am not able to find out how/where to enter using turbo tax. I know how to enter 1099-INT, 1099-DIV, Schedule D but not schedule-K. Any help would be appreciated. Also there are Part I , Part II and Part III mentioned in the schedule -K (Form 1065). Do I have to enter all three parts ? Reply Hi Bart, In Deluxe or Premier: 1. Go to the Federal Taxes Tab 2. Click “Wages and Income” 3. Click “Explore on My Own” 4. On the “Your 2011 Income Summary” scroll down to K-1s under Business Items. 5. Click “Start” You will be guided through all the entries related to your K-1 Thank you, Lisa Greene-Lewis Reply Our business is located in MI, we worked in both Ohio and Alabama last year. We received an Alabama K1 and an Ohio IT 1140 / 4708 in addition to our “normal” K1… what are we supposed to do with these additional forms? Do we have to and where are we supposed to report these forms? Michigan and Ohio are reciprocal states. Thanks! Reply Hi Dawn, Yes you have to claim both the K-1s and the Ohio IT 1140/4708. You should answer the questions in the Federal interview that ask if you earned income in any other states and it will ask you which states. When you include the states in the federal interview it will prompt you to prepare your tax returns for the other states. Also please see our support FAQ on preparing multiple state tax returns http://turbotax.intuit.com/support/iq/Multiple-States/How-do-I-File-a-Nonresident-State-Tax-Return-/GEN12109.html You also should use Premier for these transactions. If you need additional assistance don’t forget we have tax experts available to help you live via phone or chat. You can contact them through TurboTax online. Thank you, Lisa Greene-Lewis Reply Just seeking clarification regarding cb’s post: K-1’s from investments held in IRA’s (or Roth IRA’s) are not to be reported on our form 1040 if the Part II, Box E contains the IRA ID number, not the taxpayer’s ID number (or social security number)? If so, this makes logical sense, as the proceeds in IRA investments are tax-free when held in the IRA. Reply Hi Don, That is correct. You would only report unrelated Business Taxable Income from your IRA greater than $1,000, which would be in Section 20 of the K-1 if you had any. Thank you, Lisa Greene-Lewis Reply Hi, I am filing my personal tax form 1040. I have to enter K-1 that I received from company. I am not able to find out how/where to enter using turbo tax. I know how to enter 1099-INT, 1099-DIV, Schedule D but not schedule-K. Any help would be appreciated. Also there are Part I , Part II and Part III mentioned in the schedule -K (Form 1065). Do I have to enter all three parts ? I had a loss on my K-1. I entered all the information into Turbo, but no loss shows up now under K-1. I was told my loss would postively affect my tax. What gives? Reply Hi Richard, If you are eligible for a loss, it will show up on your form 1040, however losses on investments are limited by the amount invested in the partnership, whether you materially participate in the business, whether you are a general partner or limited partner, and your income. Please see IRS info on passive activity loss limitations http://www.irs.gov/pub/irs-pdf/i8582.pdf If this does not help, please contact our free tax experts at 1.800.4.intuit so they can talk to you live. Thank you, Lisa Greene-Lewis Reply I started the Home & Business version and realized I could’ve used the Premium(input K-1 from SCorp) …..is there a way to tranfer/convert all my info to Premier and not have to start over? Reply Hi Isabel, Unfortunately there is not a way. Sorry Reply My K-1 investment went belly up in 2011 and I have a $12,000 loss showing on the K-1 on line 1 and $1,200 loss showing on K-1 line 2. I have no other pasive income. Can I deduct the entire loss on my 2011 tax return or do I have to take the capital loss at $3,000 per year? Thank you Reply Hi, Without seeing all of your details, I can tell you that your loss will first be limited by your investment (basis) in the business, it also depends on whether you materially participated in the business, whether you are a general partner or limited partner, and your income. TurboTax will guide you through the correct entries and properly prepare your tax return with the K-1 information you enter. If you need more help contact our free tax experts. Thank you, Lisa Greene-Lewis Reply Thank you, cb! As it turns out my ID number in box E is my social security number. Really appreciate the response, though! 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We received a K-1 after filing and receiving our refund. It lists a distribution in box 19 (A), but we sold our shares in 2009, and had no money coming in or going out in 2010. Do I need to amend my return? Thanks. Reply
Hi Nancy, You would need to amend your tax return since the K-1 information was reported to the IRS, however if you think this was reported in error do not amend your tax return, you need to contact the business that issued the K-1 and have them correct the information reported to the IRS. Thank you, Lisa Greene-Lewis Reply
Is this true?? 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 Reply
Hi, Yes, if the K-1 does not have your social security number and the ID of your Roth then it was sent to you for informational purposes. Thank you, Lisa Greene-Lewis Reply
Hi I have K1 from the stock i owned , i sold the stock last year and the K1 says its final where do i enter that info that this is a final K1 Reply
Hi, 1. Go to the Federal Taxes tab 2. Click “Wages and Income” 3. Click “Explore on My Own” 4. On the “Your 2011 Income Summary” screen, scroll down to K-1s under Business Items. You will have the option to enter this information on the “Describe this Partnership” screen. Thank you, Lisa Greene-Lewis Reply
Hi, I am filing my personal tax form 1040. I have to enter K-1 that I received from company. I am not able to find out how/where to enter using turbo tax. I know how to enter 1099-INT, 1099-DIV, Schedule D but not schedule-K. Any help would be appreciated. Also there are Part I , Part II and Part III mentioned in the schedule -K (Form 1065). Do I have to enter all three parts ? Reply
Hi Bart, In Deluxe or Premier: 1. Go to the Federal Taxes Tab 2. Click “Wages and Income” 3. Click “Explore on My Own” 4. On the “Your 2011 Income Summary” scroll down to K-1s under Business Items. 5. Click “Start” You will be guided through all the entries related to your K-1 Thank you, Lisa Greene-Lewis Reply
Our business is located in MI, we worked in both Ohio and Alabama last year. We received an Alabama K1 and an Ohio IT 1140 / 4708 in addition to our “normal” K1… what are we supposed to do with these additional forms? Do we have to and where are we supposed to report these forms? Michigan and Ohio are reciprocal states. Thanks! Reply
Hi Dawn, Yes you have to claim both the K-1s and the Ohio IT 1140/4708. You should answer the questions in the Federal interview that ask if you earned income in any other states and it will ask you which states. When you include the states in the federal interview it will prompt you to prepare your tax returns for the other states. Also please see our support FAQ on preparing multiple state tax returns http://turbotax.intuit.com/support/iq/Multiple-States/How-do-I-File-a-Nonresident-State-Tax-Return-/GEN12109.html You also should use Premier for these transactions. If you need additional assistance don’t forget we have tax experts available to help you live via phone or chat. You can contact them through TurboTax online. Thank you, Lisa Greene-Lewis Reply
Just seeking clarification regarding cb’s post: K-1’s from investments held in IRA’s (or Roth IRA’s) are not to be reported on our form 1040 if the Part II, Box E contains the IRA ID number, not the taxpayer’s ID number (or social security number)? If so, this makes logical sense, as the proceeds in IRA investments are tax-free when held in the IRA. Reply
Hi Don, That is correct. You would only report unrelated Business Taxable Income from your IRA greater than $1,000, which would be in Section 20 of the K-1 if you had any. Thank you, Lisa Greene-Lewis Reply
Hi, I am filing my personal tax form 1040. I have to enter K-1 that I received from company. I am not able to find out how/where to enter using turbo tax. I know how to enter 1099-INT, 1099-DIV, Schedule D but not schedule-K. Any help would be appreciated. Also there are Part I , Part II and Part III mentioned in the schedule -K (Form 1065). Do I have to enter all three parts ?
I had a loss on my K-1. I entered all the information into Turbo, but no loss shows up now under K-1. I was told my loss would postively affect my tax. What gives? Reply
Hi Richard, If you are eligible for a loss, it will show up on your form 1040, however losses on investments are limited by the amount invested in the partnership, whether you materially participate in the business, whether you are a general partner or limited partner, and your income. Please see IRS info on passive activity loss limitations http://www.irs.gov/pub/irs-pdf/i8582.pdf If this does not help, please contact our free tax experts at 1.800.4.intuit so they can talk to you live. Thank you, Lisa Greene-Lewis Reply
I started the Home & Business version and realized I could’ve used the Premium(input K-1 from SCorp) …..is there a way to tranfer/convert all my info to Premier and not have to start over? Reply
My K-1 investment went belly up in 2011 and I have a $12,000 loss showing on the K-1 on line 1 and $1,200 loss showing on K-1 line 2. I have no other pasive income. Can I deduct the entire loss on my 2011 tax return or do I have to take the capital loss at $3,000 per year? Thank you Reply
Hi, Without seeing all of your details, I can tell you that your loss will first be limited by your investment (basis) in the business, it also depends on whether you materially participated in the business, whether you are a general partner or limited partner, and your income. TurboTax will guide you through the correct entries and properly prepare your tax return with the K-1 information you enter. If you need more help contact our free tax experts. Thank you, Lisa Greene-Lewis Reply
Thank you, cb! As it turns out my ID number in box E is my social security number. Really appreciate the response, though! Reply