Schedule K-1 Share of Income, Deductions, Credits for Shareholders
Schedule K-1 is actually a pair of IRS forms that report the amounts of income tax liability that an entity shifts onto those who have a beneficial interest in it. In other words, the members who make up the entity pay the taxes for the entity.
- Schedule K-1 (Form 1065) reports taxable income passed to each individual partners in a business partnership.
- Schedule K-1 (Form 1120s) reports income, loss, deductions (e.g., for health insurance) and credits for shareholders in an S-Corporation.