Schedule K-1, Partner/Shareholder/Beneficiary Share of Income, Deductions, Credits
A Schedule K-1 is a tax form distributed by certain businesses, estates, and trusts to their partners, shareholders, and beneficiaries.
If you are a partner in a partnership, a shareholder in an S corporation, or a beneficiary of an estate or trust, the K-1 is just another tax form (like a W-2 or 1099) that reports your share of the income, losses, credits, and/or deductions from that entity.
Entering Schedule K-1 into TurboTax
Don't worry! When you use TurboTax to prepare your taxes, we’ll ask you questions about your K-1, figure out the correct amount of income, deductions and credits to report, and fill in all the right forms for you.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for Schedule K-1, follow these directions.
- Select the Federal Taxes tab (the Personal tab in the Home & Business edition).
- Select the Wages & Income subtab, click on Explore on My Own.
- Scroll down the Wages & Income screen until you see the Business Items group.
- Click on the Start/Update button to the right of the Schedules K-1, Q category.
- Follow the prompts.
What if I do not get my Schedule K-1 until after April 15th?
Unlike W-2s and 1099s which typically are received by February, K-1s are frequently received much later – in fact, you may receive a K-1 long after your return is due. This is because the K-1 issuer needs to complete their tax return before they can send out their K-1s.
If you know that you will not receive a Schedule K-1 until after the due date of your return, you have the following two choices--
- Extend Before April 15th, File Later. You have the option of extending your return before April 15th, and filing the return when you receive your K-1.
- Pros. You only need to file your return once.
- Cons. If you have a refund coming, you will have to wait until you file the return to get the refund. If on the other hand, you owe money (after including an estimate of your K-1 income in your calculations), you will need to pay the amount you owe with your extension.
- File Before April 15th, Amend Later. You have the option filing your return before April 15th, and amending the return when you receive your K-1.
- Pros. You will get your refund sooner, assuming you have a refund coming.
- Cons. You need to file what amounts to two returns, the original return and the amended return. Plus you need to make sure you do not owe tax when you file the amended return. Otherwise, you will owe penalties and interest.
Important: Note that under either of the two options above, you need to make a conservative (meaning high) estimate of the income coming from your Schedule K-1(s). In other words, you want to make sure you have a refund coming, whether you file your original return later, or the amended return later. Otherwise, you may owe penalties and interest.
If you need to correct or change any information you have entered from your Schedule K-1, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply follow the navigation instructions above, and correct or change your information.
- If you have already filed your return, you will need to amend your return. Please click here for instructions.
For questions about printing, please click here.
If you have questions about the availability of form Schedule K-1, please click here.