Schedule K-1 is an IRS form used by partnerships, S corporations, and estates and trusts to declare the income, deductions, and credits that partners, shareholders, and beneficiaries have received in the tax year.
Taxpayers' with an ownership interest in a partnership or S-Corporation will receive a K-1 showing the income, deductions, and credits allocated to them from the partnership/S-corp. K-1's are furnished to partners/shareholders only after the partnership/S-corp return has been completed. This means it can take up to 9 months after year-end before partners receive the final K-1 needed to file their personal return. The original due date for completion of Partnership and S-corp returns is March 15th, (however, these dates are subject to change when they land on a weekend or federal holiday). The extended deadline for both partnerships and S-corps is September 15th, thus, partners may be on hold while waiting for their K-1s before they can file their personal returns.
Trust and estate beneficiaries are also entitled to receive K-1s to report on their returns to pay the income tax of the trust and estates. Original and extended due dates for trust and estate returns are April 16th and October 1st respectively.