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Form K-1 is a reporting form issued by partnerships, S-Corporations, estates and trusts.

Form K-1 reports an individual shareholder’s or beneficiary’s share of the entity’s income and deductions for the year.

Recipients of a K-1 will use page 2 of Schedule E for reporting some of what is on the K-1. In addition, other forms may be needed depending on what’s on the K-1. Interest income from a K-1 would be shown on the interest income line of your 1040, and you may need to show it on Schedule B, if you’re required to file a Schedule B.

A blog post in which I go line-by-line through a K-1 is a good idea, but that will have to be another post for another day.

The most-common boxes are box 1, which shows the partner’ or shareholders’ net income from the entity; box 2, which relates to any rental property the entity might hold; and boxes 5 and 6, which relate to interest and dividends passing through from the entity.

“This blog post, along with comments that may follow, should not be considered tax advice. Before you make final tax or financial decisions, please secure a professional tax advisor to give you advice about your unique situation. To secure Jason as your accountant, please click on the ‘Services’ link at the top of the page.”