Schedule K-1

What is the purpose of Schedule K-1 tax form?

As discussed previously on Other Schedule E Income, Schedule K-1 reports to you your share of the income, deductions, credits, and losses of various entities that pass through income.

Each entity uses a different Schedule K-1, which correlates to the form it must file with the IRS. Although the forms are different, the information reported is similar.

You use the information provided to report your income (loss) on your tax return. Not all items reported on Schedule K-1 are entered on Schedule E. Shown on the next page is a partner's Schedule K-1.