Schedule K-1, Taxes, and You

Tax season is here and every season we see questions about how to enter a Schedule K-1 in TurboTax, as well as what happens if you don’t receive your Schedule K-1 until after the tax deadline. If you have questions about what a Schedule K-1 is, please check out our tax article here. And if this reminds you that you need to complete your taxes, click here to get started.

Q: What is a Schedule K-1?

A: Schedule K-1s are issued by partnerships, S corporations, estates, trusts, and LLCs to their owners, shareholders, partners, and beneficiaries so the latter parties can report their share of income, deductions, and credits on their personal tax returns.

The difference between receiving your W-2 and your Schedule K-1 is the timing in which you receive them. Legislation requires partnership returns reporting K-1 tax information to be filed by March 15. Your Schedule 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 to their recipients.

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