Schedule K-1s are issued by pass-through entities to "pass along" income, losses, credits, and deductions to shareholders, partners, and beneficiaries.
What is a pass-through entity?
Pass-through entities report income and deductions but generally do not pay income tax. Instead, the income, deductions and credits are passed through to owners, partners, and beneficiaries, who in turn report them on their own tax returns.
Pass-through entities include partnerships, S corporations, estates, trusts, and LLCs (limited liability companies).
How to issue K-1s
To issue Schedule K-1, you must use TurboTax Business, which handles partnership, S corporation, and fiduciary (estates and trusts) returns.
- Open your return in TurboTax Business.
- Complete your business return, if you haven't already done so.
- Otherwise, your K-1s won't be correct.
- Click the File tab, and then click Distribute K-1s.
- Select your preferred distribution format (e-mail or regular mail) and follow the on-screen instructions.
Important: Although you are required to distribute K-1s on or before your business return's due date, we recommend you send them as soon as you complete your business return, as your shareholders, partners, or beneficiaries need those K-1s to complete their own returns, which are generally due April 15.