Glossary

Schedule K-1

Schedule K-1 is the statement a partnership, S corporation, or trust issues to each owner or beneficiary reporting their share of income, deductions, and credits for the year.

How it works

A partnership, S corporation, or trust files Schedule K-1 with the IRS for each owner or beneficiary and sends them a copy showing their share of income, deductions, credits, and other items. The recipient reports the amounts on their own return. Crypto funds, multi-member LLCs, and DAOs taxed as partnerships all issue K-1s, and K-1s are often late, which drives extension requests.

Why it matters

K-1 income is taxable whether or not any cash was distributed, and an unincorporated DAO with U.S. members may owe K-1s nobody is issuing.

Related: Form 1065, DAOs. Read more: what a Schedule K-1 is.

Guides that cover schedule K-1

Related terms

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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