What is a K-1 for taxes?
by 
The Curious Bag
ANSWERS: 1
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Partnerships and S corporations use IRS Schedule K-1 to report the share of current-year income, deductions, credits and other items for each partner or shareholder.
Who Receives a K-1
Each business partner or shareholder receives a Schedule K-1, which reports that person's share of income or losses in the business. The business also sends Schedule K-1 to the Internal Revenue Service (IRS).
Function
Those who receive Schedule K-1 use the information from the document to report income or losses on their personal income tax returns. Schedule K-1 isn't filed with the tax return but is kept for personal records.
Form 1120S
Corporations use a Form 1120S to file Schedule K-1 with the IRS.
Form 1065-B
Partnerships use Form 1065-B to file Schedule K-1.
Considerations
A person must pay tax on K-1 income, even if the partnership or corporation did not distribute the money.
Source:
Resource:
Schedule K-1 Filing Tips
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