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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 Schedule K-1 is to report each partners share of the partnerships earnings, losses, deductions, and credits. Schedule K-1 serves a similar purpose as Form 1099.
Schedule K-1 is used to report the amount of income each party is responsible for in a pass-through entity, like an S corporation or partnership. Each shareholder or partner will receive a Schedule K-1.
Use Form D-403 NC K-1 to report each partners share of the partnerships income (loss), N.C. adjustments, N.C. tax credits, etc. Each partner should keep Form D-403 NC K-1, Form NC K-1 Supplemental Schedule, and any other information provided to them by the partnership for their records.
A Schedule K-1 is a federal tax form that pass through entities like partnerships and S corporations and sometimes trusts and estates send to their partners, shareholders, or beneficiaries. The form reports the income, losses, and gains passed to each party with an interest in the entity.
The partnership uses Schedule K-1 to report your share of the partnerships income, deductions, credits, etc. Keep it for your records. Dont file it with your tax return unless youre specifically required to do so. (See Code O under Box 15, later.)

People also ask

Consequences of Not Filing K-1 Tax Forms The IRS doesnt expect individuals to file a K-1. However, they will compare your tax return to the information filed by your partnership. Partnerships that dont meet their Schedule K-1 responsibilities can also face expensive filing penalties.
A W-2 means taxes and Social Security contributions are deducted. With a K-1, thats not the case, but it may allow for substantial write-offs against your income.

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