A K-1 reports your share of income, losses, and deductions from a partnership, S-corp, or trust. You report those amounts on your personal return — even if you never received the cash.
A Schedule K-1 arrives if you’re a partner in a partnership, a shareholder in an S corporation, or a beneficiary of a trust or estate. It reports your share of the entity’s income, losses, deductions, and credits — which flow through to your personal return. The catch that surprises people: you owe tax on your allocated share even if the entity didn’t distribute cash to you ("phantom income"). K-1s also arrive late — often near or after the standard filing deadline — which is why K-1 recipients frequently file extensions. Don’t file without it; amended returns are worse.
Pass-through entities allocate income to owners whether or not cash is distributed — you’re taxed on your share, not on distributions.
This is common — K-1 recipients often file an extension. If you already filed without it, you may need to amend.
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