{"id":29514,"date":"2024-04-15T15:47:06","date_gmt":"2024-04-15T15:47:06","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=blog&p=29514"},"modified":"2024-06-24T12:22:11","modified_gmt":"2024-06-24T12:22:11","slug":"scheduling-k1-tax-form-all-you-need-to-know","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/us\/support-for-small-businesses\/scheduling-k1-tax-form-all-you-need-to-know\/","title":{"rendered":"Scheduling K1 tax form: all you need to know"},"content":{"rendered":"
Navigating tax season as a small business owner can be overwhelming \u2014 especially with the number of forms and requirements involved. If you\u2019re in a business partnership, a shareholder in an S corporation, or even the beneficiary of a trust, you\u2019ll receive a Schedule K-1 form.\u00a0<\/span><\/p>\n In this article, we’ll break down what the Schedule K-1 form is, who needs to file it, and the different types of K-1 forms.<\/span><\/p>\n Schedule K-1<\/span><\/a> is a tax form that reports a pass-through entity’s income, losses, and dividends<\/a> to its owners or investors. Pass-through entities are businesses that do not pay corporate income tax. Instead, the profits and losses are “passed through” to the individual owners or investors, who report this information on their personal tax returns.<\/span><\/p>\n The K-1 form is an <\/span>essential part of a business\u2019 tax return<\/span><\/a>, providing a breakdown of each owner\u2019s or shareholder\u2019s piece of the business’s profit or losses for the tax year.\u00a0<\/span><\/p>\n A K-1 tax form contains income, deductions, and credits allocated to each partner or shareholder. Information includes the partner\u2019s or shareholder\u2019s:<\/span><\/p>\n Schedule K-1 is typically filed by owners or investors in pass-through entities, such as:<\/span><\/p>\n If you\u2019re the owner of a partnership or S corporation, you won\u2019t file a Schedule K-1 with the IRS yourself. You’ll use the information <\/span>from your Schedule K-1 to report your share<\/span><\/a> of the business’s income, deductions, and credits on your personal Form 1040, along with any other income or losses.\u00a0<\/span><\/p>\n The owner provides each partner or shareholder a copy of their K-1 form to report their individual tax returns. Those who would typically receive a K-1 form include:\u00a0<\/span><\/p>\n There are three main types of Schedule K-1 forms. The type of form you work with is based on the pass-through entity you\u2019re involved with.\u00a0<\/span><\/p>\n While the purpose of all three types of Schedule K-1 forms is similar \u2014 to report each partner’s, shareholder’s, or beneficiary’s share of income and losses \u2014 the specific information on each form may vary slightly depending on the entity type.<\/span><\/p>\n Form 1065 is used for partnerships, including general partnerships, limited partnerships, and limited liability partnerships (LLPs). It includes each partner’s share of the partnership’s income, deductions, and credits. The partnership must provide a copy of Schedule K-1 to each partner and file Form 1065 with the IRS.<\/span><\/p>\n S Corporations use <\/span>Form 1120-S<\/span><\/a>. It reports each shareholder’s portion of the corporation’s income, deductions, and credits. The S Corporation must provide a copy of Schedule K-1 to each shareholder and file Form 1120-S with the IRS.<\/span><\/p>\n As a shareholder, you’ll use the information from your Schedule K-1 to complete various parts of your Form 1040, similar to the partnership K-1 form.<\/span><\/p>\n Form 1041 is used by estates and trusts to report each beneficiary’s share of the estate or trust’s income, deductions, and credits. The estate or trust must provide a copy of Schedule K-1 to each beneficiary and file Form 1041 with the IRS.<\/span><\/p>\n The deadline for filing K-1 tax forms depends on the type of business entity:<\/span><\/p>\n If the entity files for an extension, the deadline for providing K-1 forms to partners, shareholders, or beneficiaries is also extended.\u00a0<\/span><\/p>\n If you receive a Schedule K-1, you must include that information on your tax return. If you don\u2019t, then you may face certain consequences.\u00a0<\/span><\/p>\n For one, if you don’t report the income from your Schedule K-1, you may be underreporting your total income to the IRS, which can lead to penalties and interest charges. Suppose the IRS receives a Schedule K-1 with your Social Security or Tax ID number, but you haven’t reported the information. In that case, it can delay the processing of your return and any potential refund.<\/span><\/p>\n Lastly, failing to include K-1 information on your tax return can raise red flags with the IRS and increase your chances of being audited.<\/span><\/p>\n That\u2019s why reviewing any Schedule K-1 forms you receive is important and ensuring you include the information on your tax return.\u00a0<\/span><\/p>\n At Swoop Funding, we understand that managing your business’s finances and taxes can be time-consuming. That’s why our platform simplifies the process of securing funding for your business so you can focus on what matters most: growing your company.<\/span><\/p>\n We offer:<\/span><\/p>\n Register with Swoop<\/span><\/a> to explore your potential financing options within the app.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Navigating tax season as a small business owner can be overwhelming \u2014 especially with the number of forms and requirements involved. If you\u2019re in a business partnership, a shareholder in an S corporation, or even the beneficiary of a trust, you\u2019ll receive a Schedule K-1 form.\u00a0 In this article, we’ll break down what the Schedule […]<\/p>\n","protected":false},"author":102,"featured_media":29525,"comment_status":"closed","ping_status":"closed","template":"","category":[344,340,59],"class_list":["post-29514","blog","type-blog","status-publish","has-post-thumbnail","hentry","category-sme-support","category-swoop-guides","category-blog"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",1024,683,false],"thumbnail":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",300,200,false],"medium_large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",768,512,false],"large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",1024,683,false],"2048x2048":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",1024,683,false],"image_blog":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",378,252,false],"image_podcast":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",397,265,false],"image_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",30,20,false],"image_blog_internal":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",720,480,false],"image_blog_medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",750,500,false],"image_single_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2024\/04\/handing-out-of-documents-7821684-1024x683.jpg",80,53,false]},"post_excerpt_stackable_v2":" Navigating tax season as a small business owner can be overwhelming \u2014 especially with the number of forms and requirements involved. If you\u2019re in a business partnership, a shareholder in an S corporation, or even the beneficiary of a trust, you\u2019ll receive a Schedule K-1 form.\u00a0 In this article, we’ll break down what the Schedule K-1 form is, who needs to file it, and the different types of K-1 forms. What is the K-1 tax form? Schedule K-1 is a tax form that reports a pass-through entity’s income, losses, and dividends to its owners or investors. Pass-through entities are businesses…<\/p>\n","category_list_v2":"SME support<\/a>, Swoop guides<\/a>, Blog<\/a>","author_info_v2":{"name":"Hanna Horvath","url":"https:\/\/swoopfunding.com\/us\/author\/hannah-horvath\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/29514"}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/comments?post=29514"}],"version-history":[{"count":6,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/29514\/revisions"}],"predecessor-version":[{"id":35247,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/29514\/revisions\/35247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media\/29525"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=29514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/category?post=29514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What is the K-1 tax form?<\/span><\/h2>\n
What\u2019s included on a K-1 tax form?<\/span><\/h3>\n
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Who needs to file a Schedule K-1 tax form?<\/span><\/h2>\n
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Types of Schedule K-1 forms<\/span><\/h2>\n
Partnership K-1 form<\/span><\/h3>\n
S Corporation K-1 form<\/span><\/h3>\n
Estate or trust K-1 form<\/span><\/h3>\n
What is the K-1 tax form due?\u00a0<\/span><\/h2>\n
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What happens if I don\u2019t file a K-1?<\/span><\/h2>\n
How Swoop can help<\/span><\/h2>\n
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