You may receive a Schedule K-1 if you are a partner or shareholder of a business that passes income, losses, deductions, and credits on to individual partners or shareholders. The partnership itself typically doesn’t pay income tax on the shareholders’ behalf, instead the profits and losses get passed through to the individual partners. This is called pass-through income.
Go to this section in Credit Karma Tax: Partnership Schedule K-1 Income
A Schedule K-1 is prepared and given to each member of a partnership or shareholder of an S corp showing their individual share of the profits and losses. Partnerships and S Corps are required to provide each partner or shareholder a copy of their Schedule K-1 by the 15th day of the third month after the end of their tax year, which may be different from the calendar year depending on the accounting method they use. If you are expecting a Schedule K-1 and have not received one, you should check with your partnership or S corp to see if and when they will issue a Schedule K-1.
Source: irs.gov and Tax Calendars
Credit Karma Tax currently only supports Schedule K-1 Partner’s or Shareholder’s Share of Income, Deductions, Credits, etc. You will not be able to file with Credit Karma Tax if you have a Schedule K-1 Form 1041 from an estate or trust. You can see a list of all the forms and schedules we do support here.
The amount you’ve entered in Box 1 of the Schedule K-1 may automatically populate in the Schedule E section. You can learn more about this in Part II of the IRS Instructions for Schedule E. You can also print your tax forms to review your calculations.
If you have more questions about your Schedule K-1, you can review the IRS instructions for each form:
- Partner's Instructions for Schedule K-1 (Form 1065)
- Instructions for Schedule K-1 (Form 1120S)
- Publication 541, Partnerships