What is the purpose of a schedule K1?

The purpose of Schedule K-1 is to report each partner’s share of the partnership’s earnings, losses, deductions, and credits. It serves a similar purpose for tax reporting as one of the various Forms 1099, which report dividend or interest income from securities or income from the sale of securities.

What are the different types of K-1 tax forms?

Learn more about deadlines and extensions on the IRS website. There are three different types of K-1 tax forms, which vary depending on the type of business. These are: Form 1065 for partnerships: The partnership passes the earnings to the partners who then use the information when filing their individual tax returns to the IRS.

How many times is a K1 taxed?

The income is being passed-through to a beneficiary, so it is only taxed once. A Schedule K-1 is broken up into three parts: Part I is about the entity. It gives the entity's employer’s EIN and address. It also says the IRS location where the tax return was filed and if it’s a publicly traded partnership.