Tax Forms

K-1

A K-1 is the schedule partnerships and S corporations issue to owners to show each owner's share of income, deductions, and other tax items.

Quick answer

A K-1 is the schedule partnerships and S corporations issue to owners to show each owner's share of income, deductions, and other tax items.

It matters because owners need the K-1 to finish their own returns, and the numbers can affect basis, passive losses, and estimated taxes.

An LLC taxed as a partnership sends each member a K-1 after filing Form 1065.

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Plain-English Definition

What K-1 means

A K-1 is the schedule partnerships and S corporations issue to owners to show each owner's share of income, deductions, and other tax items.

Why it matters It matters because owners need the K-1 to finish their own returns, and the numbers can affect basis, passive losses, and estimated taxes.
Simple example An LLC taxed as a partnership sends each member a K-1 after filing Form 1065.
Related Questions

Questions people ask about K-1

What does K-1 mean?

A K-1 is the schedule partnerships and S corporations issue to owners to show each owner's share of income, deductions, and other tax items.

Why does K-1 matter?

It matters because owners need the K-1 to finish their own returns, and the numbers can affect basis, passive losses, and estimated taxes.

What is a simple example of K-1?

An LLC taxed as a partnership sends each member a K-1 after filing Form 1065.

When should I ask a CPA about K-1?

Ask a CPA when the form affects business income, contractor payments, payroll, or a filing deadline you are unsure about.

How is K-1 different from W-2?

K-1 means A K-1 is the schedule partnerships and S corporations issue to owners to show each owner's share of income, deductions, and other tax items. W-2 means A W-2 is the year-end wage statement employers give employees to show taxable wages and withholding for the year. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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