Schedule K-1 is a form used to report the taxpayer's portion of the income from a partnership, S-corporation, estate or trust. These legal entities use a pass-through taxation, according to TurboTax. They shift the responsibility for income tax from the partnership or S-corporation to the owners and from the estate or trust to the beneficiaries.Know More
According to the IRS, a K-1 is created as part of the tax return of the entity: Form 1120S for S-corporations, 1065 for partnerships, and 1041 for estates and trusts. It shows taxable income, whether or not the taxpayer received any. It also shows expenses, credits and distributions that benefit the taxpayer. The form is complex enough that each version has detailed instructions available on the IRS website, and they appear a bit different depending on the issuing entity.
According to Charles Schwab, taxpayers receive K-1s for investments in partnerships through a brokerage. Some entities that generate K-1s send out their forms after the April 15th filing deadline. The recipient either has to wait to file his own return, or file and amend once the K-1 is in hand. A copy does not have to be sent in with the tax return, according to the IRS, but the amounts reported should match the K-1.Learn more about Taxes
A taxpayer identification number, or TIN, is used by the Internal Revenue Service to track individuals and entities for tax purposes, and an employer identification number, or EIN, is one form of a TIN. Many people confuse a TIN with an individual taxpayer identification number, or ITIN, which is also a form of a TIN.Full Answer >
In order to access a W-2 form online, a taxpayer's workplace has to agree to store the information there. A taxpayer should speak with their employer about online availability of W-2 forms at work. Once the taxpayer is able to access their W-2 form through the Internet, they can simply log in to their tax website and search for their workplace for the past year, Turbo Tax notes. From there, the taxpayer can select their workplace based on its location and then sign up to receive their W-2 directly to their inbox.Full Answer >
A taxpayer completes a W-9 tax form by entering his full legal name on the first line, the name of his business on the second line if necessary, tax classification and Social Security number, according to TurboTax. The W-9 form is submitted to an employer rather than the IRS.Full Answer >
A taxpayer who claims exempt on a W-4 form turned into an employer has Social Security and Medicare taxes taken out of a regular paycheck, according to the Internal Revenue Service. As of 2014, the Social Security tax rate is 6.2 percent and Medicare tax rate is 1.45 percent.Full Answer >