What is a K1 tax form used for?

A K-1 (Schedule K-1) reports your share of income, deductions, and credits from a partnership, S-corporation, or trust/estate. Because these pass-through entities don't pay income tax themselves, the K-1 passes those tax items through to you. You use the figures on it to complete your personal Form 1040, typically through Schedule E.

Who receives a K1 from an LLC?

A multi-member LLC is usually taxed as a partnership, so each member receives a Schedule K-1 (Form 1065) reporting their share of the LLC's income, losses, and deductions. A single-member LLC generally doesn't issue a K-1: its income flows straight onto the owner's return. If the LLC elected S-corp taxation, members get a 1120-S K-1 instead.

When do you receive a K1 tax form?

K-1s are due to recipients by March 15 for calendar-year partnerships and S-corporations, and by the entity's filing deadline (often April 15) for trusts and estates. Because entities frequently file extensions, K-1s often arrive late, sometimes in summer or fall, which is a common reason individuals extend their own returns.

How does a K-1 affect my personal taxes?

K-1 amounts are added to your other income on Form 1040, usually via Schedule E, and taxed at your individual rate even if the entity didn't distribute cash. Different boxes route differently: ordinary income, rental income, interest, dividends, and capital gains each land in their own spot. A K-1 can raise your taxable income, generate passive losses, or carry credits.

How long should I keep my K1 forms?

Keep K-1s at least 7 years to cover the IRS audit window. Hold them longer, indefinitely, if they track your tax basis in a partnership or S-corp you still own, since you'll need the full history of contributions, distributions, and pass-through income to calculate gain or loss when you eventually sell your interest.

Tax

Schedule K-1

Schedule K-1 is an IRS tax form that reports your share of income, deductions, credits, and other items from a partnership, S-corporation, or trust/estate. The issuing entity files it with its own return and sends you a copy so you can report the pass-through amounts on your personal tax return.

For calendar-year partnerships and S-corporations, Schedule K-1s are due to recipients by March 15, two months before the individual return deadline, though entities that file extensions often send them much later.

Source: IRS: About Form 1065

Written & maintained by the Granite team · Last updated October 2026

Overview

Schedule K-1 is the document that carries pass-through income out of a business or fiduciary entity and onto an individual's tax return. There are three flavors: the partnership K-1 (filed with Form 1065), the S-corporation K-1 (filed with Form 1120-S), and the trust or estate K-1 (filed with Form 1041). Each reports one recipient's share of the entity's income, losses, deductions, and credits for the tax year.

The entity issues the K-1: your business partnership, the S-corp you own shares in, or the trust/estate that distributed to you as a beneficiary. You receive it as a partner, shareholder, or beneficiary. The entity pays no income tax itself; the K-1 "passes through" those tax items to you, and you report them on your Form 1040, typically on Schedule E.

When you’ll get your Schedule K-1

You're a partner in a partnership or a member of a multi-member LLC taxed as a partnership (1065 K-1)
You own shares in an S-corporation (1120-S K-1)
You're a beneficiary of a trust or estate that distributed income to you (1041 K-1)
You invested in a master limited partnership (MLP), real estate syndication, or other fund that passes through income
You need it to complete your personal return: K-1 amounts flow to Schedule E and your Form 1040

What’s on your Schedule K-1

These are the fields you’ll find on one, and what each one tells you.

Issuing entity name: The partnership, S-corp, trust, or estate that issued the K-1.
Entity EIN: The issuing entity's federal Employer Identification Number.
Entity form type: Which parent form the K-1 came from: 1065 (partnership), 1120-S (S-corp), or 1041 (trust/estate).
Recipient name: The partner, shareholder, or beneficiary the K-1 is reporting to: you.
Recipient TIN: Your SSN or EIN, usually shown masked for security.
Ordinary business income (Box 1): Your share of the entity's ordinary business income or loss for the year.
Net rental real estate income (Box 2): Your share of rental real estate income or loss from the entity.
Percentage ownership: Your share of profit, loss, and capital at year end (partnership K-1, Box J).

How long to keep it

7 years

Keep for 7 years from the date you filed the related return

K-1s establish your tax basis and carry forward suspended losses, so they matter long after the filing year. Keep them at least 7 years for audit safety, and indefinitely if the K-1 tracks basis in a partnership or S-corp you still hold, because you'll need the full history when you eventually sell your interest.

Figure out your exact shred date

Enter the date you filed the related return and we'll do the math.

This is general guidance, not tax advice. Your own return can change the window, so ask your tax preparer if you're unsure.

How Granite handles your Schedule K-1

Drop a K-1 PDF into Granite and it reads the form, tells which of the three versions it is, and pulls out the entity's name and EIN along with your share of the income. It files the K-1 under the right tax year and names it after the entity and the year, so searching the entity's name brings up every K-1 it has sent you. That full history is what you need when you sell your stake.

FAQ

Schedule K-1: common questions

What is a K1 tax form used for?: A K-1 (Schedule K-1) reports your share of income, deductions, and credits from a partnership, S-corporation, or trust/estate. Because these pass-through entities don't pay income tax themselves, the K-1 passes those tax items through to you. You use the figures on it to complete your personal Form 1040, typically through Schedule E.
Who receives a K1 from an LLC?: A multi-member LLC is usually taxed as a partnership, so each member receives a Schedule K-1 (Form 1065) reporting their share of the LLC's income, losses, and deductions. A single-member LLC generally doesn't issue a K-1: its income flows straight onto the owner's return. If the LLC elected S-corp taxation, members get a 1120-S K-1 instead.
When do you receive a K1 tax form?: K-1s are due to recipients by March 15 for calendar-year partnerships and S-corporations, and by the entity's filing deadline (often April 15) for trusts and estates. Because entities frequently file extensions, K-1s often arrive late, sometimes in summer or fall, which is a common reason individuals extend their own returns.
How does a K-1 affect my personal taxes?: K-1 amounts are added to your other income on Form 1040, usually via Schedule E, and taxed at your individual rate even if the entity didn't distribute cash. Different boxes route differently: ordinary income, rental income, interest, dividends, and capital gains each land in their own spot. A K-1 can raise your taxable income, generate passive losses, or carry credits.
How long should I keep my K1 forms?: Keep K-1s at least 7 years to cover the IRS audit window. Hold them longer, indefinitely, if they track your tax basis in a partnership or S-corp you still own, since you'll need the full history of contributions, distributions, and pass-through income to calculate gain or loss when you eventually sell your interest.

Sources

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