Estates and trusts issue a K-1 form to beneficiaries so that those beneficiaries may include the income that they’ve received on their personal income tax returns. The estate or trust then files its tax return, including K-1 information, using Form 1041. What Is a K1?
Do I need to file a K-1 form?
While individual taxpayers typically don’t file K-1 forms, you can use the information you receive from a K-1 on your personal income tax return. There are four main types of entities that are required to file a K-1: Each one of these entities completes a different type of K-1 form. These K-1 forms are similar in many ways.
Can a partnership file a K-1 form with the IRS?
Certain entities and partnerships file Schedule K-1 forms with the IRS and issue them forms to partners and shareholders. While individual taxpayers typically don’t file K-1 forms, you can use the information you receive from a K-1 on your personal income tax return. There are four main types of entities that are required to file a K-1:
