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Schedule K-1 is an Internal Revenue Service (IRS) tax form issued annually for an investment in a partnership. The purpose of the Schedule K-1 is to report each partners share of the partnerships earnings, losses, deductions, and credits.
S corporations provide a Schedule K-1 that reports each shareholders share of income, losses, deductions, and credits that are reported to the IRS on Form 1120S. Some trusts and estates pass income through to the beneficiaries.
Each shareholders distribution amount for the corporations fiscal year should be reported on Schedule K-1 (Form 1120-S) Shareholders Share of Income, Deductions, Credits, etc., Line 16, with D as the reference code.
If your partnership reported excess business interest expense in Box 13, Code K of your 1065 Schedule K-1, you are required to file Form 8990. Per Partners Instructions for Schedule K-1 (Form 1065) Partners Share of Income, Deductions, Credits, etc.
Separately-stated items are income, deductions, gains, losses, and tax preferences that might affect the taxable income of shareholders differently, depending on their income and losses.
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Schedule K-1 (Form 1120-S), Shareholders Share of Income, Deductions, Credits, etc. The S corporation files a copy of this schedule with the IRS to report your share of the corporations income, deductions, credits, etc.
What Is Schedule K-1? Schedule K-1 is a federal tax document used to report the income, losses, and dividends for a business or financial entitys partners or an S corporations shareholders. The K-1 form is also used to report income distributions from trusts and estates to beneficiaries.