Schedule K-1

tax

Also known as: K-1, Schedule K-1

Updated · Written and reviewed by Konstantin Iakovlev

Detailed explanation

K-1s arrive in March-April for tax-year preparation. Key sections: Part III shows your share of ordinary business income (taxed at your individual rates), interest, dividends, capital gains, real-estate income, etc. K-1 income flows to your Form 1040 (Schedule E for partnerships/S-corps; Schedule B for interest/dividends; Schedule D for capital gains). K-1 income is NOT subject to FICA (unlike W-2 wages from the same business) — unless the IRS reclassifies it as guaranteed payments. Owners often have to make quarterly estimated tax payments since no withholding occurs on K-1 income.

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