Schedule K-1s are a federal tax document used to report income from pass-through entities including partnerships, S corporations, estates, trusts and LLCs.
Here’s a few things you need to know:
- The Schedule K-1 is slightly different depending on whether it comes from a trust, partnership or S corporation. For more info, read What is a Schedule K-1 Tax Form?
- K-1s are typically issued by pass-through entities (partnerships, S corporations, estates, trusts, and LLCs) who don't pay income tax on the profits and losses passed through to their partners, owners, shareholders, or beneficiaries
- Recipients report the K-1 on their own personal tax returns
Note: Your K-1 may not arrive until March, April, or even later. This is because the pass-through entity needs to complete their tax return before they can distribute K-1s.