K1 Tax Form
What a Schedule K-1 means for your taxes: partnership vs S corp, self-employment tax, the QBI deduction, and a calculator for the tax on your share.
Schedule K-1 tax calculator
What a K-1 tax form is
Partnerships, multi-member LLCs and S corporations don't pay federal income tax themselves; they pass income to their owners on Schedule K-1 (Form 1065 for partnerships, Form 1120-S for S corps), and you report it on your own return, mainly on Schedule E. You owe tax on your share whether or not the business paid it out to you.
Partnership vs S corporation K-1
- Partnership: an active general partner's ordinary income and guaranteed payments are generally subject to self-employment tax (15.3% up to the 2026 wage base of $184,500).
- S corporation: K-1 income isn't subject to self-employment tax; owners who work in the business are paid wages through payroll instead (see S corp).
- Qualified business income on a K-1 can qualify for the 20% QBI deduction, which the 2025 tax law made permanent, subject to income and business-type limits.
K-1s often arrive in March or later; if yours is late, you may need an extension. If you own an MLP or partnership in an IRA, see unrelated business taxable income.
Common questions
What is a K1 tax form?
Schedule K-1 reports your share of income from a partnership, LLC, S corporation, estate or trust for your own return.
Do I pay tax on K-1 income I didn't receive?
Yes, you're taxed on your share whether or not it was distributed.
Is K-1 income subject to self-employment tax?
For active general partners usually yes; for S corporation shareholders no.
Sources
More paycheck and tax calculators: IRS Tax Transcript Request · Itemized Deductions · Lifetime Learning Credit · LIHEAP
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.