What Is a Schedule K-1?

A Schedule K-1 is a tax form that reports your share of income, deductions, and credits from a partnership, S corporation, trust, or estate. Rather than paying taxes at the entity level, these pass-through entities allocate their financial results to each owner through the K-1, and you report those amounts on your personal tax return. You might receive a K-1 if you're a partner in a business, a shareholder in an S corporation, a beneficiary of a trust or estate, or an investor in certain funds or limited partnerships. K-1s break out many different types of income — ordinary income, rental income, capital gains, and more — each of which may be taxed differently, making them more complex than a standard W-2 or 1099. K-1s are often issued late in tax season, which is a common reason people who receive them need to file a tax extension.