Taxes 101 What is a Schedule K-1 Form? 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 Jan 3, 2011 - [Updated Jul 8, 2019] 3 min read If you are an owner of a partnership, LLC, S-corp, or other entity that passes through taxes to its owners, in most cases you will receive a K-1 form each year. The K-1 is prepared by the entity to distribute to owners/shareholders to outline their portion of the income, loss, and deductions. Similar to a 1099 form received that highlights contractor income, you do not have to file the K-1 with your personal income tax return. Instead, you use the data on the form to fill out portions of your personal tax return. Preparing a K-1 For Shareholders While a K-1 form is easy if you’re just the recipient needing to record income or losses, the process is a bit more detailed for owners of an S-corp, LLC, or partnership who are responsible for distributing the K-1 forms to members. Not only do you need to report net profit or loss, but some financial data must be tracked individually. The S-corp or partnership must report certain income and expenses separately from the net profit or loss amount. These income and expense items retain their tax characteristics when passed-through to the shareholder, and are subject to the limits and tax rates on each shareholder’s personal Form 1040. Separately stated items are the following: Section 1231 gains and losses, Net short-term capital gains and losses, Net long-term capital gains and losses, Dividends eligible for the dividends received deduction (if a shareholder is a C-Corporation), Charitable contributions, Taxes paid to a foreign country, Tax-exempt interest and related expenses, Investment income and expenses, Amounts previously deducted, such as bad debts, Real estate income and expenses, Section 179 deductions, Tax credits, and Non-deductible expenses, such as 50% of meals and entertainment expenses. In addition, you must send out your K-1 forms to shareholders by March 15th. The Unexpected K-1 Obviously, if you’re an active member in a partnership or other business that regularly issues K-1s it will come as no surprise when you receive one each year. But there are situations where you may appear to get a K-1 out of the blue, and this can throw you for a loop. When this happens it’s almost always due to an investment in an ETF or fund that’s operating as a limited partnership. This isn’t always obvious to a regular investor, but buying shares of a commodity fund may in fact make you a part owner of a partnership. That means at the end of the year you’ll receive a K-1 outlining your share of the partnership’s profit or loss. This can come as quite a surprise for a new investor. One way to tackle this issue is to hold your ETFs or other investments that are limited partnerships inside an IRA. You’ll still get a K-1 at the end of the year, but the taxes are still deferred and it won’t require any additional tax calculations on your end. If you’re holding these in a taxable account, though, it’s a good idea to use good tax preparation software that will guide you through the process. Here’s what Forbes has to say about how TurboTax handles K-1 forms. Previous Post How is Your Retirement Savings Taxed? Next Post How to Adjust Your Tax Withholding for the New Year Written by More from 168 responses to “What is a Schedule K-1 Form?” « Older Comments Newer Comments » I am the executor of my mother’s estate. Other than personal property, two items remain in the estate for the past tax year. One is a bank account that earned around $300. The other is an IRA which earned about $550. I am having trouble getting the bank to distribute the IRA, but that is a different question. The first year I filed the final tax return and estate income tax return in a timely fashion. I have not filed for the second year and am in the fourth month overdue. Most of the money was distributed from the estate in the first year. Another good chunk was distributed two weeks into the second year. Income for the estate is mentioned above. I don’t believe I report the income from the IRA because it will be reported when the distribution is made by the bank. That makes the income of the estate under $600 and I don’t believe I have to file a 1041. Would I therefore not have to send K-1’s? It seems odd to file, then not file, then file a final form at a future date. Thank you Reply Hi, I live in Illinois and in 2012 received approx $8000 from my Aunt’s estate (I was named a beneficiary). She lived in Wisconsin in case that matters. Will I be taxed on this money? Thank you, Lori Reply Can I file my 2011 K1 with my 2012 taxes Reply Hi I am the trustee of my mothers trust. She passed away in March of last year. As the trustee do I have to provide the other siblings with a k-1 form and if so where do I get that form? there was a small income from the trust and inherited monies which are not taxable. Thank you. Reply I am a single mother and my daughter has a pooled special needs trust. The trust company told me they are sending me a K1 form. I used the caclulation and am only getting a few dollars back for my taxes. Should I assume I could possibly owe money having to file a k1 with the interest from the trust in her name? She is only a toddler. Thank you Reply Hi Shannon, Without knowing how much interest there is and your deductions and credits I can’t say for sure. Once you do receive the K-1 TurboTax will properly calculate everything for you. If you have additional questions, don’t forget we have tax experts available to answer your questions. Thank you, Lisa Greene-Lewis Reply Hi, If I live in Oregon, but I will receive family limited partnership distribution from a partnership in California (k-1), will I have to pay taxes in both states? Thank you, Tina Reply can i file my prior tax returns from 2008-2011 via Turbo Tax? Reply I have been asked by an executor of an estate that I am an heir of, for my ss# to issue me a K-1 form. The executor told me there are no profits only losses. Do I have to give them my ss# and do I have to use the K-1 to file my taxes. The estate is small I will be receiving around $5000.00 Thank You for your help Reply Hi Jeff, If you are the beneficiary of the estate and are receiving income from it the executor has to issue the K-1 and report who income was issued to; therefore he/she needs your ss#. You will have to report any items on the K-1 on your taxes. You can use TurboTax premier to guide you through preparing your tax return if you have a K-1. Also, don’t forget if you have any questions while your preparing your tax return you can talk to our CPAs and get your questions answered for free. https://turbotax.intuit.com/personal-taxes/online/premier.jsp Thank you, Lisa Greene-Lewis Reply How can I change the Partner’s Share of Income, Deductions, Credits on our K-1’s from 2011 to 2012? I’ve used TurboTax for 2010 & 2011, but the 5’s have changed for 2012. Thanks, Gary I just found out that I was supposed to receive k-1s for 2008, 2009 and 2010 but they weren’t sent by the s-corp. There was a large loss in 2008 due to the bank ruptcy of a customer of the corp. Now I have been told that I can’t file an ammended return because it has been more than 3 years. What can I do? Reply Hi Debby, Unfortunately that information is correct regarding your 2008 tax return. Generally to claim a tax refund your tax return has to be amended within 3 years from the date of your original tax return or within 2 years from the date you paid tax, whichever is later. You can still amend your 2009 and 2010 tax returns. Please see IRS topic 308 for more information http://www.irs.gov/taxtopics/tc308.html Thank you, Lisa Greene-Lewis Reply My mother died in Nov 2011. I have just received a 2011 K-1 with fiscal year elected to begin 7/1/2011 and end 6/30/2012. I attempted to amend my Turbo Tax created 2011 return but Turbo Tax gives me an error message, telling me to file the K-1 with my 2012 tax return. The CPA who prepared the 1041 return advises that my2011 return must be amended with the K-1 and that it should not be filed with the 2012 return. His reason is that the fiscal year elected began in 2011. Who is right — the CPA or Turbo Tax? Reply Hi Paul, Sorry about your loss. The K-1 for the estate ended on 6/30/2012 so any income was reported through 2012; therefore, it should be reported with your 2012 tax return. Thank you, Lisa Greene-Lewis Reply Thank you Lisa. I also handled my brother’s estate who died in September 2010. My brother’s estate had less than $600 of income, so I did not file a 1041. However, after having handled my mothers estate and finding that filing a 1041 passes capital losses to beneficiaries, I would like to now file a late 1041 for my deceased brother who also had a significant capital tax loss carryover at the time of his death. There will be no tax liability on my brother’s 1041. Will the IRS accept a late filing with no penalty? « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Latest News President Trump’s Tax Proposals: Overtime Tax, Taxes on Tips, and Tax Cuts and Jobs Act Extension and More Home Mortgage Interest Deduction: How Homeowners Can Save on Taxes Business Taxes The Basics of Taxation on Business Tax Forms W-9 Form and Taxes: What Independent Contractors Need to Know Home Mortgage Interest Deduction: How It Works and Who Can Claim It 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
I am the executor of my mother’s estate. Other than personal property, two items remain in the estate for the past tax year. One is a bank account that earned around $300. The other is an IRA which earned about $550. I am having trouble getting the bank to distribute the IRA, but that is a different question. The first year I filed the final tax return and estate income tax return in a timely fashion. I have not filed for the second year and am in the fourth month overdue. Most of the money was distributed from the estate in the first year. Another good chunk was distributed two weeks into the second year. Income for the estate is mentioned above. I don’t believe I report the income from the IRA because it will be reported when the distribution is made by the bank. That makes the income of the estate under $600 and I don’t believe I have to file a 1041. Would I therefore not have to send K-1’s? It seems odd to file, then not file, then file a final form at a future date. Thank you Reply
Hi, I live in Illinois and in 2012 received approx $8000 from my Aunt’s estate (I was named a beneficiary). She lived in Wisconsin in case that matters. Will I be taxed on this money? Thank you, Lori Reply
Hi I am the trustee of my mothers trust. She passed away in March of last year. As the trustee do I have to provide the other siblings with a k-1 form and if so where do I get that form? there was a small income from the trust and inherited monies which are not taxable. Thank you. Reply
I am a single mother and my daughter has a pooled special needs trust. The trust company told me they are sending me a K1 form. I used the caclulation and am only getting a few dollars back for my taxes. Should I assume I could possibly owe money having to file a k1 with the interest from the trust in her name? She is only a toddler. Thank you Reply
Hi Shannon, Without knowing how much interest there is and your deductions and credits I can’t say for sure. Once you do receive the K-1 TurboTax will properly calculate everything for you. If you have additional questions, don’t forget we have tax experts available to answer your questions. Thank you, Lisa Greene-Lewis Reply
Hi, If I live in Oregon, but I will receive family limited partnership distribution from a partnership in California (k-1), will I have to pay taxes in both states? Thank you, Tina Reply
I have been asked by an executor of an estate that I am an heir of, for my ss# to issue me a K-1 form. The executor told me there are no profits only losses. Do I have to give them my ss# and do I have to use the K-1 to file my taxes. The estate is small I will be receiving around $5000.00 Thank You for your help Reply
Hi Jeff, If you are the beneficiary of the estate and are receiving income from it the executor has to issue the K-1 and report who income was issued to; therefore he/she needs your ss#. You will have to report any items on the K-1 on your taxes. You can use TurboTax premier to guide you through preparing your tax return if you have a K-1. Also, don’t forget if you have any questions while your preparing your tax return you can talk to our CPAs and get your questions answered for free. https://turbotax.intuit.com/personal-taxes/online/premier.jsp Thank you, Lisa Greene-Lewis Reply
How can I change the Partner’s Share of Income, Deductions, Credits on our K-1’s from 2011 to 2012? I’ve used TurboTax for 2010 & 2011, but the 5’s have changed for 2012. Thanks, Gary
I just found out that I was supposed to receive k-1s for 2008, 2009 and 2010 but they weren’t sent by the s-corp. There was a large loss in 2008 due to the bank ruptcy of a customer of the corp. Now I have been told that I can’t file an ammended return because it has been more than 3 years. What can I do? Reply
Hi Debby, Unfortunately that information is correct regarding your 2008 tax return. Generally to claim a tax refund your tax return has to be amended within 3 years from the date of your original tax return or within 2 years from the date you paid tax, whichever is later. You can still amend your 2009 and 2010 tax returns. Please see IRS topic 308 for more information http://www.irs.gov/taxtopics/tc308.html Thank you, Lisa Greene-Lewis Reply
My mother died in Nov 2011. I have just received a 2011 K-1 with fiscal year elected to begin 7/1/2011 and end 6/30/2012. I attempted to amend my Turbo Tax created 2011 return but Turbo Tax gives me an error message, telling me to file the K-1 with my 2012 tax return. The CPA who prepared the 1041 return advises that my2011 return must be amended with the K-1 and that it should not be filed with the 2012 return. His reason is that the fiscal year elected began in 2011. Who is right — the CPA or Turbo Tax? Reply
Hi Paul, Sorry about your loss. The K-1 for the estate ended on 6/30/2012 so any income was reported through 2012; therefore, it should be reported with your 2012 tax return. Thank you, Lisa Greene-Lewis Reply
Thank you Lisa. I also handled my brother’s estate who died in September 2010. My brother’s estate had less than $600 of income, so I did not file a 1041. However, after having handled my mothers estate and finding that filing a 1041 passes capital losses to beneficiaries, I would like to now file a late 1041 for my deceased brother who also had a significant capital tax loss carryover at the time of his death. There will be no tax liability on my brother’s 1041. Will the IRS accept a late filing with no penalty?