What would you like to do?

What is a K-1 form from the IRS?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

A K-1 is used by a Partnership or S-Corporation to report a partner/shareholder's distributed share of income. Partnerships and S-Corporations do not pay income tax. Instead, they file their corporate / partnership tax return as an informational return only. This return will distribute the net profit to the shareholders or partners based upon their percentage of stock or how the partnership agreement reads. For example, if you own 50% of ABC Corporation, an S-Corporation, and ABC Corporation shows a $100,000 profit in 2007, you will receive a K-1 for 50% of the net profit, so $50,000. You would have to claim this $50,000 of income on your personal tax return. Because the company does not pay income tax, the net profit is passed through to the owners who pay the income tax on their personal tax returns.
A K-1 form is a form that is issued to partners, shareholders, and such showing their share of a business income that must be reported on their personal tax returns.
+ 172 others found this useful
Thanks for the feedback!

What is IRS Form SSA-25?

This is not an IRS form. SSA-25 is a form from the Social Security Administration that allows a spouse who is at least 62 years old, but has not yet reached full retirement ag

What is IRS form 1065 used for?

Form 1065 is an information return used to report the income, gains, losses, deductions, credits, etc., from the operation of a partnership. A partnership does not pay tax on

Does one pay taxes on money listed on IRS K-1 forms?

Partnerships and LLCs are filed with the IRS. The taxes are paid by the owners of the Companies and K1 forms are issued to the individual owners. The K1 forms show the income

What is a form IRS Form 1098T?

IRS Form 1098-T is a Tuition Statement information return. Form  1098-T is used by eligible educational institutions, such as a  college or university, to report information

When to file IRS form 5498?

Specific instructions for Form 5498. File Form 5498, IRA Contribution Information, with the IRS by May 31, 2011, for each person for whom in 2010 you maintained any individua

What is the IRS Form 8734 for?

It was the support schedule for a nonprofit's advance ruling period. However, after regulations were issued (T.D. 9549) it is no longer used. Larry Perlman, CPA, JD, LLM Writ

What is IRS form 1041?

A 1041 is a U.S. Income Tax Return for Estates and Trusts. You can use the search box at the IRS website to find the form and instructions.

How do you fill IRS tax forms?

The process of filing out the all imporantant tax forms can be  tedious, and as humans we are intended to make mistakes. There are  almost 20-30 different tax forms in the I
In Uncategorized

What is the IRS form 1098 used for?

The IRS 1098 form is used to report mortgage interest and other expenses related to one's mortgage to the IRS. If more than a certain amount is paid in a taxable year, the ta
In Uncategorized

What is Form 2350 used by the IRS for?

Form 2350 by the Internal Revenue Service is used to apply for an extension of time to file income taxes in the United States of America. It can be downloaded from the IRS web