There shouldn't be any overlap in income between the W-2 and the K-1.  The W-2 shows earnings you received by paycheck as an employee, which should have had payroll taxes deducted and sent in by the company.   The K-1 shows your share of the partnership's income or loss that is yours because you are a partner.  You may or may not have received some of this as a cash distribution, but it is still income to you. These are two distinctly different types of income, and need to be shown as different income sources. ... View more