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How to Fill Out and File a Schedule K-1?

Asked by: emeka22uche 979 views YA Discussion

Taxpayers who own shares in a business partnership are liable for income tax on their shares of the partnership’s income, regardless of whether or not the income is actually distributed to them. The IRS administers these requirement by requiring that partnerships file a U.S. Return of Partnership Income (IRS Form 1065) and provide each share-owning partner a Schedule K-1 to be filed with that partner’s individual tax return.thanks :D

How others found here:

  • www instructions on filling out schedule k-1
  • fill out k 1 on 1040
  • help filling out 1065 2013

7 Answers



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  2. Bobbie on Apr 22, 2012 Reply

    And of course you will first have to fill out the Partnership1065 form to start with before you will be able to correctly fill out and complete the the Schedule K-1 that will have to be sent to each of the other taxpayer Partner or Partners as you will be required to do for the tax year.
    Go to the http://www.irs.gov website and then use the search box for
    Instructions for Form 1065 and then go to page 14 for the specfic insructions starts on page 16 and then page 22 for Schedules K-1 (2011) instructions for this purpose.

    http://www.irs.gov/pub/irs-pdf/i1065.pdf

    And then the instruction that each partner will have to use to correctly fill in their own 1040 federal income tax using the information that they will have in hand from the 1065 K-1 can be found at the http://www.irs.gov website for their use also at that time in their life.

    http://www.irs.gov/instructions/i1065sk1/ch01.html

    Purpose of Schedule K-1

    The partnership uses Schedule K-1 to report your share of the partnership’s income, deductions, credits, etc. Keep it for your records. Do not file it with your tax return unless you are specifically required to do so. (See the instructions for Code O. Backup withholding, later.) The partnership files a copy of Schedule K-1 (Form 1065) with the IRS.

    Although the partnership generally is not subject to income tax, you are liable for tax on your share of the partnership income, whether or not distributed. Include your share on your tax return if a return is required. Use these instructions to help you report the items shown on Schedule K-1 on your tax return.

    The amount of loss and deduction you may claim on your tax return may be less than the amount reported on Schedule K-1. It is the partner’s responsibility to consider and apply any applicable limitations. See Limitations on Losses, Deductions, and Credits, later, for more information.

    Hope that you find the above enclosed information useful. 04/22/2012

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  3. Judy on Apr 22, 2012 Reply

    YOU don’t fill out the K-1, The business does, and gives it to the partners who then use the info in preparing their personal returns.

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  4. mrreliable3599 on Apr 22, 2012 Reply

    Partnerships don’t have “shares.”

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  5. tro on Apr 22, 2012 Reply

    you seem to have the instructions correct, if you are preparing the 1065 you know that items that flow thru to the partners have to be reported to them on a K(1), if you look at that form you will see the items that have to be reported to each partner
    and yes, each partner reports those items on his 1040, ie. interest, dividends, other flow thru items, and profit on a Sch C

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  6. RiddleMeThis on Apr 22, 2012 Reply

    @tro

    “and profit on a Sch C”

    WRONG AGAIN. It’s reported on a Schedule E. Sole Proprietors report on a Schedule C, NOT Partnerships.

    http://www.irs.gov/pub/irs-pdf/f1040se.pdf
    Supplemental Income and Loss
    “From rental real estate, royalties, partnerships,…)

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  7. Quick Answers on Apr 23, 2012 Reply

    FWIW, if you are asking this question now, are you aware that the 1065 with the government set of K-1s was due 4/15? If you didn’t have an extension, the partnership now owes 1 month of late fees ($ 195 per partner).

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