I received a K-1. What is it? - Intuit TurboTax Blog (2024)

It is mid-March. Almost two months ago you received your W-2. A short time later, the last of your 1099-INTs arrived from your bank. Just when you thought you had all 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 didn't!

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 before:Form K-1. You didn't expect it, you've never received one before, and you just got it, just 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 in a partnership, a shareholder of an S-Corp, or a beneficiary of an estate or trust, you will likely receive a K-1.

You: But what is it?

A K-1 is like a W-2 or other tax form. You use the information on the form to accurately complete your tax return. Except as illustrated in the opening scenario, K-1s are often paid much later in the year than other forms of tax.

You: Why are they so late?

Before the entity can send you the K-1, it must first complete its own tax return.

You what?

For example, a partnership must prepare its taxes (the partnership's tax return) before issuing K-1s to the partners. The due date for most corporate tax returns is March 15. Therefore, K-1s are often received much later than other tax forms. In addition, partnerships, like private individuals, can request an extension of the filing deadline, often until September 15.

You: So I might not receive a K-1 until after April 17, my tax filing deadline?

In fact, it's not only possible, it happens routinely.

You: So how do I planbee?

Most people who receive K-1s know they will receive them.

You: How do they know?

It's rare to have a partnership or trust fund child without knowing it.

You: I think you're right. So if I get one of these K-1s, what should I do?

When you're ready to start your tax return, gather all your tax forms, including any K-1s. If you use tax software, the program tells you what to do with each form.TurboTaxeasily guides you through entering items reported on your K-1 and places the information on your appropriate tax forms.

So don't lose too much sleep; Ultimately, the K-1 is just another form used to file your taxes and report your income to the IRS.

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I am retired and receive social benefits. I don't get any other income. Before I retired, I invested in a company and ended up losing my entire investment. I recently received a K-1 Form 1065 showing my losses. How will this affect any benefits I may receive if I file, especially since I suffered a loss on my investment?
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My partnership shares bought another company and they sent me a k-1 1065 with an additional statement showing and income for the shares I own and an income for the company they acquired in box 1. which one should I use or should I use in total?
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My partnership shares bought another company and they sent me a k-1 1065 with an additional statement showing and income for the shares I own and an income for the company they acquired in box 1. which one should I use or should I use total .
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- I have the same question James. Did you get an answer?
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Do I need to report a K1 I received that resides in an IRA?
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Hello, I received a K-1 with an amount in box 5 from when they sold my sister's house there. The lawyer said that this has already been taxed, but if I add it on, I will owe more money. Should I make an adjustment or not include it since the attorney said the estate paid the taxes.
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I have w-2 income, sch A, D and K-1's. Fairly easy returns - which Turbo Tax is best to buy to complete my tax return?
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- Never actually buy anything on Turbotax, if you pay for it or say no thanks, it does the exact same thing. I have been paying for years, I thanked this year to see, I paid, everything has been settled and I already have my money back.
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Have been looking for such information.
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Receiving a K1 from a trust. The BSN is in box E. The name of the partner is the company I work for. This $ was never received, only reinvested. If this is still stated on the tax return
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See Also
What partnerships need to know about Schedule K-1 before filing taxes Form K-1: Partner's share of income, deductions, credits, etc.Where can I enter a Form K-1 that I have received?ConsultStu - Fractional HR services for small/medium companies
I received a number of K-1s after I filed my 1040. They all have zeros and one only has $6 in the interest income line. Does this require me to file an amended 1040? Thank you.
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I received another K-1 in the mail today. So I just applied for an extension. Can I purchase/use Turbo Tax 2013 after the application deadline?
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- Hello Jeff,
  Yes, that's possible. You can also e-deposit no later than 11:59 tonight.
  Thank you,
  Lisa Greene-Lewis
  Answer
Turbo Tax tells me I need to file another K-1 because Part III Box has 16 numbers in both F, C and D. How do I separate these into two K-1s
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- Next: If I do another K-1, do I have to re-enter all the information?
  Answer
  - I am filing an amended 2013 tax return and have the same situation; were you ever able to find an answer?
  - I found an answer:https://ttlc.intuit.com/questions/2562547-how-do-i-add-a-separate-k1-worksheet-for-box16d-and-16e-foreign-gains
    "For the second entry in Box 16, simply go back to the beginning of the Schedule K-1 interview and tell TurboTax that you have another partnership, Schedule K-1, that you want to join. You can name it change the partnership slightly, such as adding "#2" to the correct name, for your own information. (The partnership name does not appear anywhere on the tax return.) This Schedule K-1 will include the second box 16 entry , with nothing else.'
I have Turbo Tax Deluxe and it asks me a lot of questions about my K-1, but I can't say it "gets me through it with ease." I really like the rest of my tax return, but I don't know what to do with it! (All from short term investments).
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- Hello Jennifer,
  If you have K-1s, you should use our Premier product. TurboTax should prompt you to upgrade to Premier so it can get you through your primary schools. View the forms covered in Deluxe and Premier:
  https://turbotax.intuit.com/personal-taxes/online/deluxe.jsp
  https://turbotax.intuit.com/personal-taxes/online/premier.jsp
  Thank you,
  Lisa Greene-Lewis
  Answer
  - Deluxe asks me questions about the K-1. Are you saying Premier will ask me different questions than Deluxe?
    So
Taxes 2013. I have a K1 and W2, which turbo tax software should I use?
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So is a K-1 the money you receive this year or do you only report your share of the business unit's profits? It looks like it's considered realized income, so the amount in box 1 should match what you receive this tax year, right? I guess you don't have to pay taxes on it anymore since it's already counted as income this year, right?
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I received a K-1 that shows last year's deduction as $2,468.00. There was no interest income. Is it an amount we owe?
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I'm considering taking a job where, instead of paying a salary, I get a percentage of the net profit. I will be incorporated as a “1% revocable partner” and receive a K-1. The expected gross income from this position will be approx. $50,000. Will I ultimately pay more or less tax?
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- the same. It simply comes to you on a K-1 instead of a W-2 or a 1099. Depending on the type of LLC, you may have a positive net benefit depending on the costs and whether you are considered a partner.
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I sold all the stocks, like KKR and BX, that K-1s had in my IRAs because I couldn't automatically account for them in Turbo Tax. This year I noticed a question being asked, “was this K-1 in an IRA?” Since I didn't have one this year, I didn't check that box, but does that mean Turbo Tax can now effectively handle a K-1 in an IRA?
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Had my 2012 taxes done today, but still haven't received a K-1. Should I wait, request a postponement or quote, or file an amended tax return later? Shouldn't these partnerships get us these k-1s by April 15?
Thanks for your help
sm
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My grandmother passed away in 2004 and she left a trust in her will for the 3 grandchildren, including me. The will stated that we would not receive our third until we turned 30. I turned March 30, 2012 and the following January (01-2013) I received papers from the trustees to initiate the transfer of my share. I received the check and deposited it into my savings account for the time being. My wife and I would like to pay off some of our student loans, but I'm not sure how much I should save back for the next tax year. Is there a margin on what we have to tolerate? Are we talking about 15% of the winnings or 15% of the full payout? Any help is appreciated. Thank you,
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Hello! I received a K-1 with code C for "other distribution" on line 19. This is from a company that invests in secondary market (pre-IPO) shares and when the shares go public the purchase amount is added to the distribution amount on the K-1.
I have already filed my K-1 tax return, but without the distribution amount. The distribution amount does not appear to be taxable as the sale of the shares is recorded in Schedule D.
I ran the turbo tax with change and the net change in federal and California taxes appears to be zero.
I would like to confirm that I do not need to file an amendment due to this distribution on the K-1.
Thank you.
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I received a Schedule CT K-1 with a tax amount on Part III, line 1. However, when I use the nonresident CT return in TurboTax after entering my ordinary income from the CT K-1, a other tax liability is calculated. Additionally, there doesn't appear to be a CT K-1 form in TurboTax. How do I include the information from Part III, Line 1 in my CT return?
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The TT instructions state that the information in boxes 13, 16 and 20 must be entered manually. Box 13 has T numbers from T1 to T8, Box 16 has a range of E, J, M, A. Box 20 has Y1 to Y4. Where are they all going?
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My mother died in 2009. Everything was confidential. We recently finally sold the house. the trust has been dissolved. I have never received a K-1 before. Last week I received a K-1 for 2009 showing interest income, etc., with no explanation of what the interest was for. I was not a trustee, just a beneficiary. How do I submit this form? Should I file this with my current year's taxes or amend my 2009 tax return?
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- Hallo Donna,
  Sorry for your loss. The K-1 must have dates to which it relates, e.g. 2009 or 2009-2010. You deposit it in the year to which it relates. So if it says 2009, you must adjust your tax return for 2009.
  Thank you,
  Lisa Greene-Lewis
  Answer
  See Also
  K-1 and 1099 - Americans abroad
  - Lisa, I have a W2 and a K1 from an S corp in 2013, which Turbo Tax software should I use?
What should I do if I filed my K1 and it keeps asking for trust and estate tax numbers and beneficiaries. I have no trust or beneficiaries??
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I received my K-1 at the end of 2012 for the year 2011. What steps do I take to change? I've never done this before.
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We live in Maine and received a K-1 for income from a limited partnership in Wisconsin. Are we required to file a Wisconsin state return in addition to our state return in Maine? Or can we claim that income upon our return to the state of Maine. It looks like Turbo Tax is telling me to file a Wisconsin return. But it also appears that Maine taxes that as well.
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My 2011 Schedule K-1 (Form 1065) reset my capital account and I'm not sure if I need one for the 2012 return. If the partnership ID expires, will I need a K-1 for 2012 ?
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I received a k-1 from my father's estate. I have gone through the questions in the TT. Box 11 contained A, C, D and the amounts. While TT was filing, it was flagged for a detailed explanation on line 21 of my 1040, regarding box 11 D ~ $205.00. I have no idea what to put as an explanation. I don't know where else to go for help. Thank you.
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At the end of March 2012, I received a 2011 K-1 as the beneficiary of an estate. The K-1 showed the full amount I received from the estate, even though I only received 55% of the money in calendar year 2011. I received the remaining 45% at the same time as the K-1 (March 2012). Do I have to report the money I received in March 2012 on my 2011 tax return?
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- Hi Mike,
  Because the K-1 for the estate ended in March 2012 and the income from the estate will be reported to you in 2012, you must report this on your 2012 tax return.
  Thank you,
  Lisa Greene-Lewis
  Answer
I received a K-1 as I have done for years and filed them as they were presented to me. Now the accounting firm they issued says they made a mistake over the last four years and I received more deductions than I should have and it's my fault for filing the K-1! That they will submit an amended statement for the past four years at once to correct the accounting error. Isn't that a mistake they should be responsible for?
They claim that the K-1 is for “informational purposes” only.
Any thoughts here?
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- Hello B,
  K-1s are used to transfer funds to individual parties who have an interest in the entity. I'm not sure what type of K-1 you have (trust, estate, partnership), but you will need to report income and deductions from these entities on your personal tax return.
  Thank you,
  Lisa Greene-Lewis
  Answer
I have received a K-1 (Schedule 1041) for a Survivor's Trust for the 2011 calendar year and am amending my 2011 return (already filed and recorded). At the step where TT asks if this is the last K-1 expected to be recorded, there is a note for you to answer "yes" if there is an amount in box 11. There is no amount in this box (deduction from last year). ); Does this mean I have to answer 'no'? Thank you.
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- Hallo Brian,
  Your K-1 must indicate with a check mark whether it is a final K-1. If it is not stated that it is final and there is no amount in box 11, answer 'no'. To be sure, you can also contact the trust manager.
  Thank you,
  Lisa Greene-Lewis
  Answer
Why is the amount that shows up on 1040 Line 8b (tax-free interest) exactly double the amount I entered in the TT as 'tax-free dividend'? Where is the correct TT record to get the correct amount on line 8b???
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Thank you very much for your blog article. Really thanks! Very grateful.
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- Hello Hamza,
  We're glad you enjoy it. Come back for more interesting topics.
  Thank you,
  Lisa Lewis
  http://blog.turbotax.intuit.com
  Answer
TurboTax Premier asks if I received a K-1. I did that, but the company involved is not recognized as an "S" corporation in any of the states where I file. Do I have to answer 'yes' or 'no' to return that state?
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- Hello Phil,
  You still have to answer yes. When you enter the status information into the program, they should prompt you and enter the appropriate data for you based on the status information you enter.
  Thank you,
  Lisa Greene-Lewis
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We received a K-1 after submitting and receiving our refund. This shows a payment in box 19 (A), but we sold our shares in 2009 and no money came in or out in 2010. Do I need to change my return? Thank you.
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- Hallo Nancy,
  You will need to amend your tax return since the K-1 information was reported to the IRS, but if you believe it was reported incorrectly, do not amend your tax return. You must contact the company that issued the K-1 and have them correct the information reported to the tax authorities.
  Thank you,
  Lisa Greene-Lewis
  Answer
  - Thanks for your help, Lisa.
Is it true?? I called the tax authorities. The representative said I do NOT need to report this unless the spouse's ID number in Part II Box E of the K-1 form is my ID (my Social Security). It turns out that the ID number on the forms I was given was the ID of my ROTH IRA, which she said is not a taxable entity, therefore I can ignore those forms - they are for my records only. I asked if it mattered if Box 20 V was worth more than $1,000 – perhaps sometime in the future as returns accumulate – and she reiterated: If Box E has Roth's ID number, it doesn't matter how much is in Box 20 V is because a Roth is a non-taxable entity
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- Hallo,
  Yes, if the K-1 does not have your Social Security Number and your Roth ID, it was sent to you for your information.
  Thank you,
  Lisa Greene-Lewis
  Answer
Hello, I have K1 from the stock I owned, I sold the stock last year and the K1 says final, where do I enter the information that this is a final K1
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- Hallo,
  1. Go to the Federal Taxes tab
  2. Click on 'Salary and income'
  3. Click on 'Discover yourself'
  4. On the "Your 2011 Income Statement" screen, scroll down to K-1s under Business Items.
  You have the option to enter this information on the "Describe this partnership" screen.
  Thank you,
  Lisa Greene-Lewis
  Answer
Hallo,
I am filing my personal tax form 1040. I need to enter the K-1 I received from the company. I don't know how/where to get in with the turbo tax. I know how to enter 1099-INT, 1099-DIV, Schedule D, but not Schedule-K. Any help is appreciated. There are also Part I, Part II and Part III mentioned in Schedule -K (Form 1065). Do I have to complete all three parts?
Answer
- Hello Bart,
  In Deluxe of Premier:
  1. Go to the Federal Taxes tab
  2. Click on 'Salary and income'
  3. Click on 'Discover yourself'
  4. On “Your 2011 Income Statement,” scroll down to K-1s under Business Items.
  5. Click on "Start"
  You will be guided through all the details related to your K-1
  Thank you,
  Lisa Greene-Lewis
  Answer
Our company is based in MI, we worked in both Ohio and Alabama last year. In addition to our "regular" K1, we have also received an Alabama K1 and an Ohio IT 1140/4708... what are we going to do with these additional forms? Do we have to report these forms and where do we have to report them? Michigan and Ohio are reciprocal states. Thank you!
Answer
- Hallo Dawn,
  Yes, you must claim both the K-1s and the Ohio IT 1140/4708. You will need to answer the federal interview questions that ask if you have earned income in other states, and ask you in which states. When you include the states in the federal interview, you will be asked to prepare your tax returns for the other states.
  Also see our frequently asked questions for support on preparing multi-state tax returns
  http://turbotax.intuit.com/support/iq/Multiple-States/How-do-I-File-a-Nonresident-State-Tax-Return-/GEN12109.html
  You must also use Premier for these transactions. If you need more help, don't forget that tax experts are available to help you via phone or chat. You can contact them online through TurboTax.
  Thank you,
  Lisa Greene-Lewis
  Answer
I'm just looking for clarification on the CB's post: K-1s from investments in IRAs (or Roth IRAs) should not be reported on our Form 1040 if Part II, Box E contains the IRA ID number, not the taxpayer's ID number (or citizen service number)? If so, this makes sense, as the returns from IRA investments are tax-free when held in the IRA.
Answer
- Hello Don,
  It is correct. You only report unrelated taxable income from your IRA over $1,000, which would be in Section 20 of the K-1 if you had it.
  Thank you,
  Lisa Greene-Lewis
  Answer
  - Hallo,
    I am filing my personal tax form 1040. I need to enter the K-1 I received from the company. I don't know how/where to get in with the turbo tax. I know how to enter 1099-INT, 1099-DIV, Schedule D, but not Schedule-K. Any help is appreciated. There are also Part I, Part II and Part III mentioned in Schedule -K (Form 1065). Do I have to complete all three parts?
I had a loss on my K-1. I entered all the information into Turbo, but now no loss appears under K-1. I was told that my loss would positively impact my taxes. What gives?
Answer
- Hallo Richard,
  If you are entitled to a loss, it will be reflected on your Form 1040. However, losses on investments are limited by the amount invested in the partnership, regardless of whether you participate significantly in the business, whether you are a general partner or a limited partner, and your income. See IRS information on passive activity loss limitationshttp://www.irs.gov/pub/irs-pdf/i8582.pdfIf this doesn't help, please contact our tax experts toll-free at 1.800.4.intuit so they can speak to you live.
  Thank you,
  Lisa Greene-Lewis
  Answer
I started the Home & Business version and realized I could have used Premium (entry K-1 from SCorp)…..is there a way to transfer/convert all my information to Premier without having to start over?
Answer
- Hello Isabel,
  Unfortunately there is no way. Excuse me
  Answer
My K-1 investment skyrocketed in 2011 and I have a $12,000 loss on K-1 line 1 and a $1,200 loss on K-1 line 2. I have no other passive income. Can I deduct the entire loss on my 2011 tax return or do I have to take the $3,000 capital loss per year? Thank you
Answer
- Hallo,
  Without seeing all your details, I can tell you that your loss will be limited primarily by your investment (base) in the company, it also depends on whether you have substantially participated in the company, whether you are a managing partner or you are a limited partner, and your income. TurboTax will guide you through the correct entries and correctly prepare your tax return with the K-1 information you enter. If you need further assistance, please contact our free tax experts.
  Thank you,
  Lisa Greene-Lewis
  Answer
Thanks, CB! It turns out that my ID number in box E is my social security number. But really appreciate the response!
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